Boston Scientific Cuts Profit Outlook, Shares Slide

CHICAGO (Reuters) - Boston Scientific Corp on Monday reported a quarterly net profit, compared with a year-ago loss, but cut its full-year earnings outlook, citing weakness in the market for implantable heart defibrillators.

The company's shares fell 6.6 percent to $9.45 from a close of $10.16 on Monday on the New York Stock Exchange.

The dampened outlook from Boston Scientific follows on the heels of a profit warning earlier this month by St Jude Medical Inc , a rival maker of implantable cardioverter defibrillators, and weaker-than-expected sales by fellow stent maker Johnson & Johnson.

"We're seeing healthcare companies miss on the top line so far this quarter, so investors are worried about that. Cost-cutting has run its course. Now we're looking for top-line growth, and so far we have a couple of companies that haven't done it," said Edward Jones analyst Aaron Vaughn.

Boston Scientific said its third-quarter net income was $200 million, or 13 cents per share, compared with a net loss of $62 million, or 4 cents per share, a year ago.

Excluding restructuring and other special charges, the Natick, Massachusetts-based company said it earned 19 cents a share in the latest quarter.

Vaughn attributed about 7 cents to amortization, suggesting the company earned about 12 cents a share after adjustments.

According to Thomson Reuters I/B/E/S, analysts had been expecting a profit of 14 cents a share excluding special items.

Boston Scientific said third-quarter sales rose 3 percent to $2.025 billion. Analysts had been looking for revenue of $2.040 billion, according to Thomson Reuters I/B/E/S.

"It doesn't look good. They missed on the top line consensus. They missed on bottom line on our estimate," said Jan Wald, analyst for Noble Financial Group.

Worldwide sales of the company's cardiac rhythm management products, which include ICDs and pacemakers, rose to $646 in the third quarter from $612 million in the same period a year ago.