(Reuters) - U.S. medical device maker Boston Scientific Corp’s (BSX.N) shares fell 5 percent on Thursday after disappointing sales in its pacemaker business, even as the company reported better-than-expected revenue overall in the third quarter.
Boston Scientific said sales of pacemakers dipped 4.5 percent to $149 million in the quarter ended Sept. 30. The result fell $6.5 million short of Wall Street estimates, according to analysts at JPMorgan.
Analysts said investors’ expectations for Boston Scientific’s third-quarter report had been high, and the lower sales in the pacemaker business - which makes up just 7 percent of total sales - were overshadowing otherwise good results.
“We would certainly use this weakness (in the stock) as a significant buying opportunity,” Canaccord Genuity analyst Jason Mills said, adding it was a “very good quarter” for the company.
Results were also impacted by Hurricane Maria, which last month devastated the island of Puerto Rico - where Boston Scientific has operations. One facility there has since resumed operations, the company said on Thursday.
“While investors could view this quarter’s performance as less compelling than that of recent quarters, we do think Boston Scientific absorbed some weather-related headwinds, delivering a sales beat and in-line earnings per share despite this,” said Leerink analyst Danielle Antalffy.
Marlborough, Massachusetts-based Boston Scientific said its total net sales rose 5.6 percent to $2.22 billion, edging past analysts’ average estimate of $2.21 billion, according to Thomson Reuters I/B/E/S.
Net income climbed 24 percent to $283 million or 20 cents per share. Excluding items, the company earned 31 cents per share, matching analysts’ expectations.
Boston Scientific also raised its revenue forecast for 2017 to a range of $8.99 billion to $9.02 billion from $8.89 billion to $8.99 billion, driven mainly by recent acquisitions.
While its heart devices business contributes the bulk of Boston Scientific’s revenue, the company has bought smaller companies such as Apama Medical Inc and Symetis SA to strengthen other parts of its portfolio.
Shares of Boston Scientific, which have risen nearly 37 percent since the beginning of the year, were down 3.9 percent at $28.49 in trading before the bell on Thursday.
Reporting by Tamara Mathias in Bengaluru; Editing by Sai Sachin Ravikumar