Boston Scientific Raises Outlook

Boston Scientific Corp. on Wednesday raised its full-year outlook, as revenue topped expectations for the third quarter amid strength in the segment that includes its endoscopy and women's-health devices.

The medical-device maker boosted its current-year forecast to adjusted earnings of $1.09 to $1.11 a share on revenue of $8.34 billion to $8.39 billion. Previously, the company had forecast earnings of $1.07 to $1.11 a share on revenue of $8.27 billion to $8.37 billion.

The Marlborough, Mass., company also forecast adjusted fourth-quarter earnings of 27 cents to 29 cents a share on revenue of $2.14 billion to $2.19 billion. Analysts surveyed by Thomson Reuters expected earnings of 29 cents a share on $2.15 billion in revenue.

Boston Scientific said sales in its MedSurg segment—which includes products for endoscopy, neuromodulation, and urology and pelvic health—rose 15% in the third quarter to $753 million.

Last month, Boston Scientific agreed to buy EndoChoice Holdings Inc. for roughly $210 million, expanding its endoscopy business as sales of some products have slowed. Boston Scientific said it expects to complete the acquisition in the fourth quarter.

For the third quarter, Boston Scientific reported a profit of $228 million, or 17 cents a share, compared with the year-ago loss of $198 million, or 15 cents a share. Excluding various items, per-share earnings rose to 27 cents from 24 cents.

Revenue jumped 11% to $2.11 billion. Excluding the impact of foreign currency and acquisitions, revenue grew 9%.

Analysts polled by Thomson Reuters had forecast earnings of 27 cents a share on $2.07 billion in revenue.

Gross margin rose to 71.8% from 71.5%.

Sales in the company's largest segment, cardiovascular, grew 13% in the third quarter to $825 million. The segment includes drug-eluting stents and other heart-related products. The company's rhythm-management segment, which includes defibrillator, saw sales rise 4% to $527 million.

Shares of Boston Scientific rose 2.5% in premarket trading. The stock closed Tuesday at $22.44 and has risen 22% so far this year.

Write to Imani Moise at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 08:55 ET (12:55 GMT)

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