Medical solutions provider Boston Scientific (NYSE:BSX), 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.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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