Guidant Says It Will Meet Earnings Estimates

Guidant Corp. reaffirmed that it will meet Wall Street estimates for its first-quarter operating earnings after its shares fell to its lowest level in nearly 2 1/2 years. The Indianapolis-based maker of cardiovascular devices said it expects first-quarter operating earnings of $126.9 million, or 41 cents a share, in line with analysts’ expectations of 40 cents to 42 cents. The company’s forecast excludes a one-time charge associated with the recall of its Ancure system, a minimally invasive method for treating abdominal aortic aneurysms. Guidant had estimated recall-related charges in the range of $12 million to $15 million, but the company said the actual charge probably will be less. Guidant said it made the announcement to offset possible misleading speculation after its share price hit a new low. Bear Stearns analyst Frederick Wise had lowered his full-year earnings estimates to $1.73 for 2001 and $2.10 for 2002, from previous estimates of $1.80 and $2.15, respectively. Guidant shares hit a new 52-week low of $37.60 before rebounding on the news to close up 43 cents at $41.10 on the NYSE.