Boston Scientific 4Q Profit Rises 80%

Boston Scientific Corp. said its fourth-quarter income grew 80% as the medical-device maker posted slightly higher sales and cut product costs.

Like many medical-device companies, Boston Scientific has in recent years begun investing heavily in emerging economies such as China, where a health-care overhaul has expanded access to services and boosted demand for pharmaceuticals and medical devices.

Device firms hope those investments can offset sales pressure at home and in Europe, where sales have slowed.

Boston Scientific reported a profit of $108 million, or eight cents a share, up from $60 million, or four cents a share, a year earlier. Excluding restructuring and litigation-related charges and other items, earnings rose to 21 cents from 18 cents.

Net sales edged up 0.9% to $1.84 billion.

Boston Scientific expected an adjusted profit of 18 cents to 20 cents a share and revenue of $1.78 billion to $1.83 billion.

Gross margin rose to 69.8% from 68%, as product costs fell 4.8%. Operating expenses rose 2.9%.

In the latest period, interventional cardiology sales fell 6.4% to $500 million, while cardiac-rhythm management sales grew 2.4% to $468 million.

For the new year, the company expects to post adjusted earnings of 75 cents to 80 cents a share on revenue of $7.3 billion to $7.5 billion. Analysts surveyed by Thomson Reuters estimated revenue of $7.41 billion.

Boston Scientific also predicted a first-quarter adjusted profit of 16 cents to 18 cents a share and revenue of $1.755 billion to $1.805 billion. Market estimates were for revenue of $1.8 billion.

Shares closed Monday at $13.01 and were up 1.8% premarket. As of the close, the stock was up 8.2 % so far this year.

Write to Ben Fox Rubin at [e-mail]

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