Boston Scientific Corporation (BSX) yesterday reported financial results for the third quarter of fiscal 2009 after the market close. Earnings per share were 19 cents, beating the Zacks Consensus Estimate by 5 cents and the year-ago earnings by 3 cents.

Sales

Net sales in the quarter were $2.0 billion Incorporatedreasing approximately 2% year over year. Excluding an unfavorable foreign currency translation (FX), net sales increased roughly 3% year over year. On a geographic basis, U.S. sales contributed roughly 58% of total revenues and increased 4% year over year. International sales increased 2% year over year.

Growth in net sales can be attributed to higher demand for the company’s Cardiac Rhythm Management [CRM], Endosurgery and Neuromodulation products, with revenues increasing 6%, 8%, and 21%, respectively, in these segments. This was partly offset by lower sales of Cardiovascular, Neurovascular and Electrophysiology products.

In the CRM space, the company reported higher sales of ICDs and pacemakers. Boston Scientific maintains its leadership position in the drug-eluting stent (DES) market with a 41% global market share. DES revenues increased roughly 4% year over year in the reported quarter.

Margins

Boston reported a strong expansion in margins primarily due to lower costs. Gross margin increased 200 basis points (bps) year over year to 68.9%. Operating margin increased 1,560 bps year over year to 17.0%. Higher gross and operating margins had resulted in increasing the net margin 1,300 bps year over year to 9.9%.

Balance Sheet

Boston ended the quarter with cash and cash equivalents of roughly $1.4 billion. The company prepaid $225 million of term loan debt in the reported quarter. As a result, its debt balance stood at approximately $6.0 billion at the end of the quarter.

Outlook

Boston has provided guidance for the fourth quarter and full fiscal 2009. For the fourth quarter, net sales are estimated between $2.025 and $2.125 billion. Earnings per share should range between 17 and 21 cents.

For fiscal 2009, net sales are estimated between $8.134 and $8.234 billion. Earnings per share should range between 75 and 79 cents.

Boston Scientific Corporation is a manufacturer of medical devices and products used in a broad range of interventional medical specialties. The company faces significant competition across its product portfolio. The primary competitors include Johnson & Johnson (JNJ), Medtronic Inc. (MDT), Abbott Laboratories (ABT) and St. Jude Medical Inc. (STJ).

Zacks Investment Research
View original at: Zacks.com News Feed

1. (BSX) Boston Scientific Readies for Clinical TrialBoston Scientific Corporation (BSX) announced its first patient enrollment for the MADIT-RIT clinical trial. The...
2. (BSX) Boston Scientific Corporation Settles Patent Infringement With Johnson & JohnsonBoston Scientific Corporation (BSX) yesterday announced that it will settle fourteen patent infringement lawsuits against...
3. (ABT) Abbott Lab’s XIENCE V Presents Positive DataYesterday, Abbott (ABT) presented positive long-term data on the XIENCE V Everolimus Eluting Coronary Stent...
4. (BSX) Positive SYNTAX for Boston Scientific StentBoston Scientific Corporation (BSX) recently came out with its two-year SYNTAX clinical data that do...
5. (BSX) Boston Scientific Registers Positive Results From MADIT TrialBSX: Positive Results from MADIT Trial Boston Scientific Corporation (BSX) announced positive final results from...
6. (BSX) Boston Scientific is Ready For MADIT ResultsBoston Scientific Corp. (BSX) is geared up for its landmark MADIT-CRT trial final results, which...

Search Posts by Tag: Abbott Laboratories | ABT | Boston Scientific Corporation | BSX | DES | JNJ | Johnson & Johnson | MDT | Medtronic Inc | St. Jude Medical Inc | STJ | WisdomTree SmallCap Dividend | Healthcare

RSS Feeds by Tag: Abbott Laboratories | ABT | Boston Scientific Corporation | BSX | DES | JNJ | Johnson & Johnson | MDT | Medtronic Inc | St. Jude Medical Inc | STJ | WisdomTree SmallCap Dividend | Healthcare |

Other Posts by: vitalstocks | RSS Feed for this author