Boston Scientific Raises Full-Year Profit Forecast on Heart Devices Unit Strength

Reuters04-24

April 24 (Reuters) - Boston Scientific raised its annual profit forecast and beat Wall Street expectations for first-quarter results on the back of resilient demand for the company's heart devices, sending the medical device maker's shares up 4.2% before the bell.

Investor expectations around the performance of medical device makers have been heightened since last November after a resurgence in demand, as people, especially older adults, opted for medical procedures deferred during the pandemic.

Boston Scientific, which generates most of its revenue from sales of its heart devices such as pacemakers and stents, also makes equipment for diagnosing and treating a range of gastrointestinal and pulmonary conditions.

Both the company's medsurg and cardiovascular segments beat first-quarter revenue estimates on Wednesday. The cardiovascular unit reported sales of $2.45 billion, compared to analysts' estimates of $2.3 billion, according to LSEG data.

Earlier this month, Johnson & Johnson's medical device segment missed quarterly revenue estimates as analysts pointed to a weakness in the company's vision care products and surgical devices.

However, industry bellwether J&J said it continues to expect medtech-related procedure volumes to remain elevated through 2024.

Boston Scientific now expects 2024 adjusted earnings per share between $2.29 and $2.34, compared with its previous forecast of $2.23 to $2.27 per share.

The company's revenue increased 13.8% to $3.86 billion in the first quarter, compared to estimates of $3.69 billion.

On an adjusted basis, Boston Scientific earned 56 cents per share, compared to estimates of 51 cents.

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