Boston Scientific raises full-year profit forecast on heart devices unit strength
By Christy Santhosh and Puyaan Singh
(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 nearly 7%.
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.
"Electrophysiology sales grew 72% ... driven by the adoption of Farapulse" CEO Michael Mahoney said on Wednesday, adding that the segment is expected to drive significant growth globally in 2024 and beyond.
The company's pulsed field ablation system Farapulse, which uses small burns or freezes to treat irregular heartbeats, is competing with Medtronic's PulseSelect in an $8 billion electrophysiology market, according to Mizuho analyst Anthony Petrone.
The cardiovascular unit, which includes electrophysiology, 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 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, beating estimates of $3.69 billion.
On an adjusted basis, Boston Scientific earned 56 cents per share, topping expectations of 51 cents.
(Reporting by Christy Santhosh and Puyaan Singh in Bengaluru; Editing by Shounak Dasgupta)
