Boston Scientific Posts Big Sales, Profit Gains In Q3
Boston Scientific not only topped most of Wall Street’s estimates for its third quarter report, but also its own, as the medical device company generated sales of more than $2.1 billion—an 11 percent increase from a year ago.
The Marlborough, Massachusetts-based company—which employs roughly 7,200 workers in Minnesota—also saw a 13 percent year-over-year rise in profits for the three-month period ending September 30. Boston Scientific’s profits totaled $368 million, amounting to 27 cents per share.
Analysts anticipated $2.07 billion in revenue and earnings per share of 27 cents. During its previous quarterly report, Boston Scientific projected revenue growth of up to 10 percent for the third quarter, which the company beat.
“Our differentiated products and services continue to make a meaningful impact for our customers and the patients they treat, as shown by very strong revenue growth in the third quarter and year to date,” said Boston Scientific CEO Mike Mahoney in prepared remarks. “Our global team is delivering excellent performance across our various business units and geographies.”
In fact, Boston Scientific managed to bring in double-digit, year-over-year revenue growth for nearly every one of its business divisions and regional sales areas for the quarter.
Medical surgery products led the company’s growth (up 15 percent to $753 million), followed by its cardiovascular division (up 13 percent to $825 million), and then its rhythm management division (up 4 percent to $527 million).
Furthermore, the Asian-Pacific, Middle East and African markets were especially receptive to Boston Scientific’s products during the three-month period as sales rose 20 percent. Sales growth also occurred in the U.S. (up 11 percent), in Europe (up 6 percent), and in the 20 countries the company defines as “emerging markets” (up 10 percent).
Fourth quarter sales are expected to be between $2.14 billion and $2.19 billion, the company said, with earnings per share estimates in the range of 27 cents to 29 cents.
In line with its positive end-of-year outlook, Boston Scientific increased its full-year guidance. The company anticipated earnings of $1.09 to $1.11 per share compared to prior guidance of $1.07 to $1.11. Fiscal 2016 revenue could also improve as much as $150 million more than its previous estimate of $8.37 billion, Boston Scientific said.
Throughout Wednesday, the company’s stock settled largely around its previous close of $22.44.