) -- It's been a tough year for

Boston Scientific

(BSX) - Get Report

, but the medical device maker was able to beat the Street in its second quarter earnings, announced after the market close on Tuesday. Boston Scientific shares rose between 2% and 3% in after-hours trading as it beat on the bottom line and met the Street on the top line, even as profits fell versus the previous year.

The Street was only expecting earnings of 3 cents per share from Boston Scientific, which delivered earnings of 12 cents.

Analysts estimate that Boston Scientific lost 3% market share to competitors during a month-long recall in its defibrillator business in March. The main competitors are

St. Jude Medical




(MDT) - Get Report

>>Boston Scientific: Calm Before the Locusts?

The defibrillator market is Boston Scientific's largest market, and the recall forced analysts who already thought shares had bottomed at $8 before the March recall to take price targets down even lower, with several analysts arguing $7 to $8 was fair value. The BSX shares have slipped even lower as the entire medical device market has taken a hit with the European market situation worsening in 2010.

Boston Scientific hit the Street expectation of $1.9 billion in revenue for the quarter, which was lower than last year's second quarter revenue of just under $2.1 billion for Boston Scientific.

Boston Scientific CEO Ray Elliott commented on the cardiac rhythm management (CRM) market in the second quarter results, saying, "In CRM, we finished the quarter well ahead of where we expected to be, thanks to exceptional execution by the sales team and everyone else involved in our recovery. "

Frederick Wise at Leerink Swann, wrote on Monday about a just completed Leerink Swann study of the defibrillator market share showing that while BSX competitor

St. Jude Medical


picked up some lasting market share during the defibrillator recall, Medtronic's gains might be short-lived, and Boston Scientific's market share should return to normal by the end of 2010.

The Leerink Swann analyst wrote in a research note on Monday morning, "BSX market share is recovering, now possibly back into the 24-25% range in the June-July time frame and should continue to recover into 2H10 and 2011."

Overall Boston Scientific CRM sales were at $322 million the second quarter, versus the year ago quarterly sales of $405 million.

Boston Scientific estimates net sales for the third quarter of 2010 of between $1.9 billion and adjusted earnings of 10 cents to 13 cents. The Street expects earnings of 6 cents and revenue more or less in line with the company's target.

The medical device maker revised its estimates for the full year 2010, to net sales of between $7.6 billion and $7.9 billion, and adjusted earnings of 54 cents to 62 cents per share.

The Street was looking for full year revenue of $7.8 billion from Boston Scientific and earnings of 28 cents.

-- Written by Eric Rosenbaum from New York.


>>Boston Scientific: Calm Before the Locusts?

Follow on


and become a fan on