Boston Scientific 'Unlikely to Meet' Earnings Guidance After Cyberattack. Stock Falls.

Dow Jones
Sep 08

Boston Scientific said Tuesday it probably won't hit quarterly and full-year guidance targets as the fallout from a cyberattack in late August has taken a toll on the medical device maker.

Boston Scientific stock declined 2.3% to $46.68 in premarket trading on Tuesday after ending Friday up 1.8%. The stock has suffered this year and has fallen 50% as of the closing bell on Friday. Shares have declined 55% over the past 12 months.

The company in a regulatory filing Tuesday said it was "unlikely to meet" net sales growth and adjusted earnings guidance ranges for the third quarter and the full year.

The medical device maker at the end of July expected full-year sales growth of 5.5% to 6.5% and adjusted earnings between $3.28 and $3.32 a share. Boston Scientific forecast third-quarter net sales growing 3% to 5% with adjusted earnings of 80 cents to 82 cents a share.

Wall Street currently expects full-year adjusted earnings of $3.30 a share on net sales of $21.35 billion, according to FactSet. The analyst consensus also pegs third-quarter adjusted earnings at 81 cents a share with sales totaling $5.26 billion.

The company's earnings warning came after Boston Scientific on Aug. 25, identified a cyberattack that resulted in global disruptions to its operations. Boston Scientific said Tuesday it hasn't identified evidence of ongoing unauthorized access to its systems, but that the investigation of the incident "remains ongoing."

Boston Scientific added it anticipates recovering some portion of the impacted revenue as it continues to ramp up operations globally, fulfill customer orders, and reduce remaining backlogs.

The company, however, added that the full impacts of the cyberattack aren't "yet known." Boston Scientific plans to to provide an update on its operational and financial outlook, including the cyberattack impacts, during its third-quarter conference call on Oct. 28.

 

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