(By Balaseshan) Boston Scientific Corp. (NYSE: BSX) slipped to a quarterly loss due to goodwill impairment charges from Cardiac Rhythm Management. Despite revenue missing consensus, adjusted earnings exceeded Street's expectations.
Loss for the third quarter were $725 million or $0.52 per share, compared to a profit of $142 million or $0.09 per share last year.
The latest quarter results was primarily impacted by an estimated $809 million goodwill impairment charge associated with its U.S. Cardiac Rhythm Management reporting unit. Adjusted earnings per share (EPS) rose to $0.16 from $0.15.
Net sales declined 7% to $1.735 billion. Excluding the impact of foreign currency and sales from divested businesses, sales decreased 5%.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.11 per share on revenue of $1.76 billion for the third quarter.
Interventional Cardiology revenue plunged 20% to $494 million, while Cardiac Rhythm Management revenue fell 8% to $462 million.
Looking ahead into the fourth quarter, the company expects adjusted earnings of $0.15 to $0.18 per share and revenue of $1.74 billion to $1.815 billion. GAAP earnings are anticipated to be in $0.06 to $0.09 per share range. Street analysts predict profit of $0.12 per share on revenue of $1.80 billion.
For the full year 2012, the company now projects adjusted earnings of $0.63 to $0.66 per share and revenue of $7.168 billion to $7.243 billion. BSX now predicts losses on a GAAP basis in a range of $2.86 to $2.89 per share. Street analysts anticipate EPS of $0.42 on revenue of $7.26 billion.
Previously, the company had anticipated GAAP loss of $2.09 to $2.16 per share, adjusted earnings of $0.62 to $0.68 per share and revenue of $7.2 billion to $7.4 billion for fiscal 2012.
The amount of the goodwill impairment charge is subject to finalization and is expected to be in a range of $700 million to $900 million.
BSX closed Wednesday's regular session down 0.71% at $5.62. The stock has been trading between $4.79 and $6.41 for the past 52 weeks.