Litigation costs felt in Boston Scientific's first quarter
Marlborough-based Boston Scientific Corp. reported adjusted first-quarter earnings of 21 cents per share Tuesday, a penny higher than for the first quarter of 2014, and at the high end of the company’s projection of 19 to 21 cents.
However, litigation-related costs and other charges contributed to a net loss of $1 million in the quarter, with no per-share change. A year earlier, Boston Scientific had a profit of $133 million. The first quarter ended March 31.
Boston Scientific also said its operational revenue grew 6 percent for the quarter, compared with the first quarter of 2014, though it was flat on a reported basis. Sales were $1.768 billion during the quarter, in line with the company’s expectation, which was in the range of $1.74 to $1.80 billion. Revenue, though, missed the consensus estimate from Zacks analysts of $1.776 billion.
In a statement Tuesday, the company lowered its outlook for the full year 2015, saying it expected revenue in the range of $7.225 to $7.375 billion, compared with its prior expectation of $7.300 to $7.500 billion.
“We achieved strong results in the first quarter, and we continue to build global momentum,” President and CEO Mike Mahoney said in the statement. He highlighted Boston Scientific’s Interventional Cardiology division, which includes the Watchman Left Atrial Appendage Closure Device and other surgical products, as delivering particularly good results this past quarter. The Watchman device received Food and Drug Administration approval during the quarter.
Another advance for the quarter the company cited in its statement was entering into an agreement with C.R. Bard Inc. to distribute the Lutonix drug-coated balloon in the U.S. for the treatment of peripheral artery disease.
Boston Scientific also said it signed a strategic alliance with Frankenman Medical Equipment Company to accelerate physician training and expand utilization of less invasive medical technologies in China.
In February, Boston Scientific settled a long-running lawsuit over its 2005 acquisition of Guidant, agreeing to pay Johnson & Johnson $600 million.
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