After a recall of one of its heart devices in February, Boston Scientific's first quarter earnings fell just short of analysts' estimates, the company said Thursday.
The company recalled its Lotus heart valve devices in February due to problems with the devices' locking mechanisms during implantation. But despite the inventory charge from the recall, the company said in an earnings call Thursday morning that there was no change to its full-year earnings-per-share guidance. It expects to re-launch the product in Europe and submit a premarket approval in the U.S. later this year.
"Lotus remediation work remains on track," said Boston Scientific CEO Mike Mahoney in the call.
Though the company misssed some analysts' earnings estimates, its adjusted earnings per share, at $0.29, were within the company's guidance range of $0.29 to $0.31. Total earnings in the quarter were $290 million, up from $202 million the year before.
A month after the Lotus recall was announced, Boston Scientific discontinued sales of the Fuse endoscopy system, made by the Endochoice business it acquired in late 2016. Endoscopy growth was strong, the company said, with 14% sales growth in the first quarter. The cardiovascular segment also was strong, with 8% sales growth in the quarter.
That contributed to $2.16 billion in sales during the first quarter, ending March 31, 2017, growth of 10% compared to the same quarter in 2016, making it the company's sixth straight quarter of operational sales growth of 10% or more. Cardiology drove the bulk of the sales, hitting $871 million in the quarter. "After an outstanding 2016, Boston Scientific continued its strong momentum and began 2017 with another quarter of strong results," Mahoney said.