* Third-quarter net loss 52 cents vs profit 9 cents
* Ex-items, profit 16 cents vs Wall St view of 11 cents
* Sales fall to $1.735 bln from $1.874 bln
Oct 18 Medical device maker Boston Scientific
Corp reported a quarterly net loss due to charges and
lower sales in its two largest businesses, and warned of
continued weakness in the fourth quarter, when sales usually get
a seasonal boost.
Shares tumbled 4.4 percent to $5.37 on the New York Stock
The company lost market share in its key heart stent and
heart defibrillator markets.
It lowered its 2012 sales outlook to a range of $7.168
billion to $7.243 billion, from $7.2 billion to $7.4 billion.
Boston Scientific now expects earnings ranging from 63 cents to
66 cents per share, excluding unusual items, versus 62 cents to
68 cents previously.
"Their results are underwhelming. This company is doing what
it always does, which is meandering along. I'm not convinced
they have figured out what they need to do next. Their pipeline
is not near as strong as their competitors'," said Morningstar
analyst Debbie Wang.
In the third quarter, it recorded a net loss of $725
million, or 52 cents per share, compared with a net profit of
$142 million, or 9 cents per share, in the year-ago period.
Excluding items, profit was 16 cents per share. On that
basis, the average Wall Street estimate was for a profit of 11
Per-share figures were based on fewer outstanding shares as
the company repurchased about 46 million shares under a 2011
Quarterly sales were $1.735 billion, down from $1.874
billion a year ago.
Sales of interventional cardiology products, such as heart
stents, fell 20 percent in the quarter, while sales of cardiac
rhythm management products, such as pacemakers and implantable
defibrillators, dropped 8 percent. Those are the company's two
largest businesses, making up more than half of total sales.
Company executives told a conference call they expect
continued weakness in the markets for their main cardiology
Some of the declines can be blamed on weakness in Europe,
said Danielle Antalffy, an analyst with Leerink Swann, noting
soft sales of cardiac rhythm management products from competitor
St. Jude Medical Inc.
But Boston Scientific clearly has its own problems.
"Their pipeline is filled with mostly me-too products. It's
hard to get excited about it," she said.
Third-quarter earnings included goodwill and other
intangible asset impairment charges, acquisition- and
divestiture-related net credits, restructuring- and
litigation-related charges, tax items and amortization expense,
of $946 million, or 68 cents per share.