Boston Scientific Corp., the second-biggest maker of heart-rhythm devices, reported profit that beat analysts’ estimates and raised its forecast amid signs that demand for defibrillators and stents is starting to stabilize. The shares rose the most since 2008.
Second-quarter earnings, excluding one-time items, of 12 cents a share outpaced by 3 cents the average of 20 analysts’ estimates compiled by Bloomberg. Revenue fell 1.1 percent to $1.81 billion, the Natick, Massachusetts-based company said in a statement today. Analysts had estimated $1.78 billion.
Boston Scientific raised its 2013 profit forecast to 67 cents to 71 cents a share, from its April outlook of 65 cents to 70 cents. Growth in emerging markets helped bolster the second-quarter sales, Boston Scientific executives said on a conference call today.
“Our team is beginning to build momentum and execute our global strategy,” Chief Executive Officer Michael Mahoney said on the call.
Boston Scientific rose 13 percent to $10.83 at the close of trade in New York, its largest climb since December 2008. The shares have doubled in the past 12 months.
Second-quarter net income of $130 million, or 10 cents a share, compared with a loss of $3.58 billion, or $2.51, a year earlier that included a one-time goodwill cost of $3.4 billion, the company said.
“Everything was just a little bit better,” Joanne Wuensch, an analyst at BMO Capital Markets in New York, said in a telephone interview. “Each segment was a little better than expected.”
The results follow St. Jude Medical Inc.’s posting of better-than-estimated sales of defibrillators used to shock a stopped heart back into action and pacemakers to regulate the rhythm.
“We suspect in the case of a potential stable-to-improving implanted cardiac defibrillator market that a rising tide lifts all boats,” said Danielle Antalffy, an analyst with Leerink Swann Research in New York, in a July 17 note to clients.