Medical solutions provider Boston Scientific (BSX -0.80%), known best for its myriad of cardiovascular and heart rhythm management products, on Tuesday reported modest but steady growth in the first quarter.
Revenue rose 1% year over year inclusive of negative currency effects to $1.77 billion. That rise was aided most by its MedSurg business division, which delivered a 7% increase in revenue to $548 million, and a 2% bump in its rhythm management division to $524 million. Within rhythm management, the company's neuromodulation segment saw sales improve 23% to $109 million. Revenue from its largest division, cardiovascular, fell fractionally to $700 million from $701 million in the prior-year period.
International sales were also a nice source of growth, with Boston Scientific noting that revenue rose 8% abroad, with emerging market sales up 22% for the quarter. Emerging-market revenue now accounts for 9% of total sales.
Adjusted earnings per share for the quarter improved 25% to $0.20, from $0.16 in the prior year. Helping boost profit was an absence of litigation expenses in the current quarter compared to last year, a 7% drop in the cost of products sold, a 6% dip in research and development costs, and the aforementioned improved sales. These lower costs were partially offset by a 6% increase in selling, general, and administrative costs tied to the launch of new products.
Looking ahead, Boston Scientific anticipates full-year revenue of $7.3 billion-$7.5 billion, representing currency-adjusted growth of 2%-5%. Furthermore, it slightly boosted its adjusted EPS guidance to a new range of $0.77-$0.82 from the previous projection of $0.75-$0.80.
