Boston Scientific Corp. swung to a loss in the third quarter, hit by litigation-related charges, though revenue and adjusted profit came in higher than expected.
Boston Scientific is working through major cost-cutting plans, while it moves to diversify its product portfolio to make it less dependent on sales of its cardiac devices. Stents and implantable heart-rhythm devices account for more than half of the company’s sales, and both face growth challenges and high levels of competition that can pressure prices. Cardiovascular revenue was flat in the latest quarter, while interventional cardiology revenue declined 2 percent.
The company has significant Twin Cities operations.
Overall, the Marlborough, Mass.-based medical-device company on Wednesday reported a loss of $198 million, or 15 cents a share, compared with a profit of $43 million, or 3 cents a share, a year earlier. Excluding certain items, per-share earnings were 24 cents in the latest quarter. Revenue grew 2.3 percent to $1.89 billion.
Boston Scientific had forecast earnings of 21 cents to 23 cents a share on revenue of $1.79 billion to $1.84 billion.
The latest quarter included litigation-related charges of $457 million, compared with $139 million a year earlier.
Adjusted for currency fluctuations and divestitures, overall revenue grew 9 percent, revenue at its cardiovascular business rose 9 percent, and interventional cardiology revenue rose 7 percent.
Boston Scientific also gave new forecasts, calling for full-year revenue in a range of $7.47 billion to $7.51 billion, compared with prior guidance of $7.275 billion to $7.375 billion. Boston Scientific expects adjusted earnings in the range of 90 cents to 92 cents a share, compared with its previous forecast of 88 cents to 92 cents a share.
For the fourth quarter, the company estimates sales between $1.97 billion and $2.01 billion and adjusted earnings between 23 cents to 25 cents a share. Analysts expect $2 billion of revenue and 26 cents of earnings.
