Boston Scientific's stock plummeted 5.02% during intraday trading on Friday, marking a significant decline for the medical device maker.
The sharp drop comes despite the company reporting better-than-expected first-quarter results, with revenue rising 12% year-over-year to $5.203 billion and adjusted EPS reaching $0.80. However, investors reacted negatively to the company's decision to lower its full-year adjusted EPS guidance to a range of $3.34-$3.41. Management cited weaker-than-expected sales in its renal stone treatment devices and Watchman cardiac rhythm products as the primary reasons for the guidance reduction.
The decline appears to be a combination of disappointment over the revised outlook and profit-taking activity following a nearly 9% surge in the previous trading session. While the company maintains a long-term growth orientation with strategic acquisitions as its top capital allocation priority, the mixed signals from strong quarterly performance but reduced annual guidance have prompted this technical correction.
Comments