€170m profits at Boston Scientific
Net income was $236 million (€170m), or 15 cents a share, compared with a loss of $1.08 billion (€780m), or 71 cents, a year ago after one-time legal costs, the company said last night. Earnings excluding some items were 20 cents per share, topping the average estimate of 10 cents in a Bloomberg survey of 22 analysts. The company forecast 2011 profit, excluding some items, of 50 cents to 60 cents a share.
Chief executive Ray Elliott has said his goal is to double revenue growth to as much as 8% by 2015, in part by acquiring companies in higher-growth businesses. The company is seeking to overcome slowing sales in its two biggest markets, cardiac stents and heart-rhythm devices including pacemakers.
“Boston now seems well-positioned to drive value for long-term oriented investors,” Rick Wise, an analyst at Leerink Swann, wrote in a January note to investors.
“We expect 2011 to be a difficult but necessary transition year in part driven by a worsening pricing environment and uncertainty in procedural volumes,” said Mr Elliott.
“We’ve made significant progress in our strategy to realign our portfolio through the execution of our priority growth initiatives, with four targeted acquisitions and a divestiture,” said Mr Elliott. “These acquisitions add promising new technologies to our portfolio and bolster our internal pipeline, which we expect will deliver more than 150 new products through 2015.
“Proceeds from the divestiture of our neurovascular business provide us with increased flexibility to fund acquisitions and pay down debt.
“Nevertheless, we expect 2011 to be a difficult but necessary transition year,” he added.
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