Boston Scientific’s 2nd-quarter profit falls 38 percent on lower heart device sales

Boston Scientific 2Q profit falls 38 percent

NATICK, Mass. — Medical device maker Boston Scientific said Tuesday its second-quarter net income fell 38 percent on sliding sales of heart devices, but the results topped Wall Street forecasts.

Meanwhile, the company boosted its 2010 outlook.

Boston Scientific has been struggling with sales of its implantable defibrillators over the last few years because of safety concerns and competition. In March, it suspended sales of its two leading defibrillators because it failed to notify regulators of changes in the way it makes the devices. Medical device manufacturers are required to notify federal health authorities within 10 days of making manufacturing changes to such devices.

During the quarter, net income fell to $98 million, or 6 cents per share, from $158 million, or 10 cents per share, during the previous year. Revenue fell 7 percent to $1.9 billion from $2.07 billion.

Excluding charges, the company said it earned 12 cents per share. Analysts forecast 3 cents per share in net income on $1.91 billion in revenue.

Defibrillator system sales fell 24 percent to $238 million, while stent sales fell 12 percent to $209 million.

But, looking ahead, the company boosted its 2010 outlook, saying it expects net income between 54 cents and 62 cents per share, excluding charges, on revenue between $7.6 billion and $7.9 billion. It previously forecast net income between 50 cents and 60 cents per share.

During the third quarter, the company expects net income between 10 cents and 13 cents per share excluding charges, on revenue between $1.85 billion and $1.93 billion. Analysts expect net income of 6 cents per share on $1.94 billion in revenue.

Boston Scientific shares gained 13 cents, or 2.1 percent, to $6.40 in extended trading after the announcement.