Boston Scientific stock scored a breakaway gap-up Wednesday after beating first-quarter sales expectations on the back of its cardiovascular business.
The cardiovascular division brought in $2.45 billion in sales, growing 15.9% on a strict, as-reported basis. Analysts expected a lower $2.31 billion, according to FactSet. Sales of medical-surgical instruments also popped 10.3% to $1.41 billion, above calls for $1.38 billion.
Promisingly, it appears sales of electrophysiology gear ramped during the quarter, Evercore ISI analyst Vijay Kumar said in a client report. Electrophysiology tests analyze a patient's heart rhythm to look for abnormalities. Further, sales of Watchman were strong. Watchman is an implantable device to reduce the risk of stroke in patients not taking oral blood thinners.
"While we don't have the details yet, we suspect total electrophysiology accelerated from the 40% levels in the fourth quarter, and Watchman likely was robust as well," he said in a report.
On today's stock market, Boston Scientific stock jumped 5.7% to 72.91. Shares broke away from a three-weeks-tight buy point, MarketSurge.com data shows.
Boston Scientific Stock Breaks Out
Overall, adjusted earnings climbed 19% to 56 cents per share, while sales grew 13.8% to $3.86 billion. Both measures beat analysts' forecasts for a respective 51 cents and $3.68 billion. Organically, sales surged 13.1%.
Chief Executive Mike Mahoney called out the initial U.S. launch of Farapulse for helping drive strong sales. Farapulse is a pulsed field ablation system. The technology uses electrical impulses to treat abnormal heart rhythm.
For the year, the company guided to adjusted earnings between $2.29 and $2.34 a share, with net organic sales growth ranging from 10% to 12%. Analysts predict $2.26 earnings per share and $15.59 billion in sales, a 9% revenue gain.
Boston Scientific stock has a year-to-date gain of 19% and is also actionable on a rebound from 10-week support. Shares hold an IBD Digital Relative Strength Rating of 89. This means Boston Scientific stock ranks in the top 11% of all stocks in terms of 12-month performance.
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