(Reuters) - Heart device maker Boston Scientific Corp’s (BSX.N) quarterly revenue fell just shy of Wall Street expectations as sales in its second-biggest unit fell, sending its shares down as much as 6 percent.
The cardiac rhythm management (CRM) unit, which makes pacemakers and defibrillators, reported a 5 percent fall in sales to $501 million in the fourth quarter, compared with a year earlier.
The company also said it expects to launch its MRI-compatible pacemaker in the second half 2016, with its approval expected in the second quarter. The company had earlier expected U.S. approval for the device in the first quarter.
Chief Executive Mike Mahoney said the launch of the pacemaker will likely be pushed to the second half of the year.
“... So as you look forward to CRM, I really believe that you’re going to see this business strengthen in the second half of 2016,” he said on a call with analysts.
Analysts said the CRM unit business was suffering due to competition from Medtronic Plc (MDT.N).
Medtronic received U.S. approval for the first MRI-compatible pacemaker in 2011 after which rivals Boston Scientific and St. Jude Medical Inc STJ.N have been losing market share.
MRIs generate powerful radiations during the scan, because of which patients with pacemakers are advised not to undergo the procedure.
Boston Scientific’s CRM unit sales were below expectations but were better when compared with St. Jude’s, Evercore ISI analyst Vijay Kumar wrote in a note.
Boston Scientific reported a fourth-quarter profit that beat Wall Street estimates by a cent, helped by an 18 percent rise in sales in its MedSurg unit that sells surgical products.
The company’s net loss shrank to $142 million, or 11 cents per share, in the quarter ended Dec. 31, from $299 million, or 23 cents per share, a year earlier.
Revenue rose 4.8 percent to $1.98 billion, but missed estimates of $1.99 billion.
Sales in its cardiovascular unit, the company’s biggest and that makes stents and catheters, rose 1.2 percent to $756 million.
Boston Scientific said it expects adjusted earnings per share of $1.03-$1.07 for the current year. Analysts on average were expecting $1.05, according to Thomson Reuters I/B/E/S.
The Marlborough, Massachusetts-based company’s shares were down 4 percent at $17.00 in late-morning trading. The stock had gained 39 percent in 2015.
Reporting by Rosmi Shaji in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel