Rivals' sales hit Boston Scientific

Boston Scientific Corp., the second-largest maker of heart devices, said second-quarter profit dropped 15 percent as rivals cut into sales of its heart stents and defibrillators.

Net income fell to $98 million, or 7 cents a share, from $115 million, or 8 cents, a year earlier, the Natick company said. Adjusted earnings beat the 11 cent estimate of 13 analysts in a Bloomberg survey.

Revenue was $2.02 billion, compared with $2.07 billion last year. (Bloomberg)

Bank of America Corp., whose stock climbed 60 percent in less than a week, reported earnings that beat analysts' estimates and said newly acquired Countrywide Financial Corp. would add to its profit this year.

Second-quarter net income at the biggest US consumer bank, declined 41 percent to $3.41 billion, or 72 cents a share, exceeding the 54-cent average estimate of analysts surveyed by Bloomberg.

Revenue was a record $20.6 billion, and chief executive Kenneth Lewis said there are no plans to cut the dividend.

Bank of America's stock sagged 42 percent in the first six months of 2008 on investor concern that Countrywide's losses - which totaled $2.3 billion in the second quarter - would be a drag on earnings.

Lewis completed the $2.5 billion purchase of Countrywide on July 1, betting that the depressed price and a rebound in home sales will make up for the current record wave of mortgage defaults.

Four of the nation's five biggest banks have now reported better-than-estimated results, sparking a rally in financial shares that lifted Bank of America 48 percent in three days last week. (Bloomberg)

Apple Inc. reported a 31 percent increase in third-quarter profit on sales of its Macintosh personal computer. The shares, however, fell more than 6 percent in after-hours trading after the company forecast revenue and earnings that missed analysts' estimates.

Net income climbed to $1.07 billion, or $1.19 a share, from $818 million, or 92 cents, a year earlier, Cupertino, Calif.-based Apple said. Apple predicted a fourth-quarter profit of $1 a share and sales of $7.8 billion, below the $1.24 a share in profit and $8.3 billion in sales anticipated by analysts in a Bloomberg survey.

The forecast raises concern that chief executive Steve Jobs may not get as big a boost from back-to-school shopping and sales of its new iPhone 3G this quarter. After record Mac orders last quarter, investors had expected Apple to build on those sales in the current period.

The low forecast "is something they do every quarter," Andy Hargreaves, an analyst at Pacific Crest Securities, said in an interview from Portland, Ore. "It shouldn't surprise people, but it does."

Apple typically beats its projections and has topped analysts' estimates for sales and profit in the past eight quarters. (Bloomberg)

American Express Co., the biggest US credit card company by purchases, said second-quarter profit fell 37 percent as more consumers defaulted on loans.

The shares fell 9.9 percent in extended trading.

Profit from continuing operations was $655 million, or 56 cents a share, missing the 82-cent average estimate of 17 analysts surveyed by Bloomberg News.

Net income declined to $653 million, or 56 cents a share, from $1.06 billion, or 88 cents a year earlier, the New York-based company said.

American Express, Capital One Financial Corp., and Discover Financial Services shares have dropped more than one-third in the past year amid concern the lenders underestimated the depth of the US slowdown.

Moody's Investors Service has a negative outlook on credit card lenders and said defaults "will most certainly" rise this year. Stressed consumers are tapping plastic as access to home equity loans falls off, Moody's said in a February report. (Bloomberg)

Merck & Co., the third-largest US drug maker, said net income increased 5 percent on greater use of its diabetes pill Januvia and added revenue outside the United States.

Second-quarter net income rose to $1.77 billion, or 82 cents a share, the Whitehouse Station, N.J., company said. Merck beat analysts' estimates, excluding certain items, by 3 cents a share. Revenue was unchanged at $6.1 billion.

Excluding some items, earnings were 86 cents a share, beating the 83-cent estimate of 14 analysts in a Bloomberg survey. A year ago, net income was $1.68 billion, or 77 cents a share. (Bloomberg)

Royal Caribbean Cruises Ltd. reported a narrower quarterly profit due to a doubling of fuel costs, and unveiled a cost-cutting plan to save $125 million a year.

"Too much of our profitability is being eroded by the increase in fuel prices," chairman and chief executive Richard Fain said.

Net income fell to $84.7 million, or 40 cents per share, from $128.7 million, or 60 cents per share, a year earlier. Over the period, fuel prices rose 55 percent.

As a result of the restructuring, the company expects to incur charges of about $15 million, or 7 cents per share, in the third quarter. (Reuters)