Boston Scientific Corp., the second- biggest U.S. heart device-maker, fell the most in five months after sinking demand for stents and defibrillators led to a fourth consecutive quarterly sales drop.
Boston Scientific declined 5.3 percent to $5.05 at 10:50 a.m. New York time, after earlier dropping to $5.02 in the biggest intraday decrease since February 2. The stock had decreased 25 percent in the past 12 months through Wednesday.
Second-quarter sales declined 7.4 percent to $1.83 billion, as revenue dropped from drug-coated stents, used to prop open clogged heart arteries, and from defibrillators used to shock a stopped heart back into a normal rhythm, Boston Scientific said Thursday. Analysts had estimated $1.88 billion. The falling revenue contributed to the Natick-based company reducing the top end of its 2012 profit forecast
“Cardiac rhythm management and stent sales fell short of both guidance and consensus,” said Michael Weinstein, an analyst at JP Morgan in New York, in a note to clients today. “Boston’s cardiac rhythm management franchise continues to struggle,” while the stent business may be losing significant market share to Medtronic Inc.’s recently approved Resolute drug-coated stent, he said.
Earnings excluding one-time items will be 62 to 68 cents a share for the year, Boston Scientific said. The company in April forecast 60 to 70 cents. Sales may be $7.2 billion to $7.4 billion for 2012, compared with an April outlook of $7.35 billion to $7.65 billion.
Defibrillator sales dropped 9.7 percent to $355 million in the second quarter from a year earlier, while revenue from drug- coated stents fell 21 percent to $318 million, the company said.