Boston Scientific Q4 Profit Down 19%, Sees Q1 Results Below View

(RTTNews) - Medical device maker Boston Scientific Corp. (BSX) on Wednesday reported a 19 percent decline in profit for the fourth quarter from last year as higher revenues were more than offset by an increase in operating expenses and one-time charges.

Looking ahead, the company provided financial outlook for the first quarter mostly below Street view. For fiscal 2015, the company forecast earnings in line with analysts' estimates, but provided revenue guidance below their expectations.

The Marlborough, Massachusetts-based company's net income for the fourth quarter was $87 million or $0.06 per share, down from $108 million or $0.08 per share in the prior-year quarter.

Results for the latest quarter include net charges of $216 million after-tax or $0.16 per share, while the prior-year quarter's results included net charges of $182 million after-tax or $0.13 per share.

Excluding items, adjusted net income for the latest quarter was $303 million or $0.22 per share, compared to $290 million or $0.21 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales for the quarter increased 3 percent to $1.89 billion from $1.84 billion in the same quarter last year. Analysts were looking for revenue estimate of $1.90 billion.

The company noted that prior-year sales have been restated to reflect the realignment of certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014.

On a constant currency basis, international sales for the quarter increased 8 percent, with 10 percent growth in Europe and 17 percent growth in Emerging Markets. Emerging markets revenue represented 10 percent of total worldwide sales.

Cardiovascular sales grew 5 percent from the year-ago period to $745 million, with interventional cardiology sales increasing 4 percent and peripheral interventions rising 6 percent.

Rhythm management sales grew 2 percent to $527 million, reflecting flat cardiac rhythm management sales and a 19 percent increase in electrophysiology sales.

MedSurg sales grew 1 percent to $614 million, with endoscopy sales flat with last year and urology/women's health sales growing 6 percent. However, neuromodulation sales declined 3 percent from last year.

Boston Scientific's operating expenses for the quarter rose 5 percent from last year to $1.22 billion.

For fiscal 2014, Boston Scientific's net income was $267 million or $0.20 per share, compared to net loss of $121 million or $0.09 per share in the previous year.

Adjusted earnings per share for the year were $1.13 billion or $0.84 per share, compared to $991 million or $0.73 per share last year.

Net sales for the year rose 3 percent to $7.38 billion from $7.14 billion in the prior year.

Street expected the company to earn $0.83 per share for the year on revenues of $7.39 billion.

Looking ahead to the first quarter, Boston Scientific forecasts reported earnings of $0.07 to $0.11 per share, adjusted earnings in a range of $0.19 to $0.21 per share, and revenues between $1.74 billion and $1.80 billion.

Analysts expect the company to report earnings of $0.21 per share for the quarter on revenues of $1.83 billion.

For fiscal 2015, Boston Scientific reported earnings of $0.42 to $0.48 per share, adjusted earnings in a range of $0.88 to $0.92 per share, and revenue in a range of $7.30 billion to $7.50 billion.

Street expects the company to report fiscal earnings of $0.90 per share on revenue of $7.59 billion.

BSX closed Tuesday's trading at $14.65, up $0.04 or 0.27 percent on a volume of 18.81 million shares.