Boston Scientific Corp. (BSX) swung to a third-quarter profit as the company recorded a small revenue increase and much smaller unusual charges.

However, the medical-device maker lowered its earnings outlook for the year, despite boosting its revenue target. The company now targets earnings of 75 cents to 79 cents, excluding items, down from its July view of 82 cents to 86 cents. However, it now sees revenue of $8.13 billion to $8.23 billion, up from $8.1 billion to $8.14 billion.

Following the news, shares were down 2.6% to $9.90 in after-hours trading. The stock is up by about 30% this year.

Concerns about broader problems for the medical-devices sector escalated earlier this month when St. Jude Medical Inc. (STJ) issued soft preliminary third-quarter results linked to a hospital belt-tightening.

The industry is also fighting $4 billion in annual fees targeting the industry as part of a proposed health-care bill, saying the cost would have devastating effects on business growth.

On Monday, Boston Scientific reported earnings of $200 million, or 13 cents a share, compared with a year-ago loss of $62 million, or 4 cents a share.

The latest results included a credit with the reduction of previously recorded litigation reserves, offset by restructuring and amortization costs, while the prior year included $298 million in impairment, restructuring and other charges.

Excluding those items, earnings rose to 19 cents from 16 cents.

Net sales climbed 2.4% to $2.03 billion. Excluding currency translation and sales from divested businesses, sales were up 3%.

In July, the company projected per-share earnings of 17 cents to 21 cents on revenue of $2 billion to $2.1 billion.

Gross margin improved to 68.9% from 66.9%.

Worldwide sales of the company's stents, tiny metal scaffolds used to prop open heart arteries, increased 1.3%, with revenue up 3.5% in the U.S. and rising 0.9% abroad.

Sales trends for Boston Scientific's stents were being closely watched by analysts after two studies showed an Abbott Laboratories (ABT) heart stent worked better.

Worldwide sales of heart-rhythm management devices, including implantable cardioverter defibrillators, or ICDs, grew 5.6%, as U.S. sales jumped 6.6% and sales abroad climbed 3.4%.

Looking ahead, the company projected fourth-quarter per-share earnings, excluding items, of 17 cents to 21 cents on revenue of $2.03 billion to $2.13 billion. Analysts surveyed by Thomson Reuters expected 17 cents and $2.11 billion, respectively.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com