Boston Scientific Stung by $3.4 Billion Charge

Medical device maker Boston Scientific (NYSE: BSX) has reported a second-quarter net loss of $3.40 billion, or $2.39 per diluted share. Adjusted earnings were $0.11 per share, which compares with $0.10 per share in the same period a year ago. That also beat the consensus EPS estimate by a penny per share.

The company also said quarterly revenue declined to $1.83 billion from $1.97 billion in the year-ago quarter. That fell short of the average revenue estimate of $1.89 billion.

During the second quarter, the company recorded a noncash $3.4 billion estimated goodwill impairment charge associated with its Europe, Middle East and Africa reporting unit. This was primarily driven by lower projected long-term growth rates due to macroeconomic factors and its performance in the European market.

“Despite increased competition, challenging market dynamics and disappointing results in certain businesses during the quarter, we delivered on our adjusted earnings and continued to generate strong cash flow,” said CEO Hank Kucheman.

Shares are about 0.7% higher in premarket trading to $5.37. The 52-week trading range is $5.01 to $7.55. Thomson Reuters had a consensus analyst price target of $6.79 before this earnings release.

Competitor St. Jude Medical (NYSE: STJ) is down about 0.08% in premarket trading.