Boston Scientific posted a mixed third quarter Wednesday, though sales of one of its key products likely grew more than 30% and BSX stock edged higher.
According to Evercore ISI analyst Vijay Kumar, the lion's share of Boston Scientific's sales beat was driven by its cardiovascular division. On a strict, as-reported basis, cardiovascular sales climbed more than 9%, topping overall sales growth. Organically, sales advanced 12.6%. Organic sales exclude such items as divestitures, acquisitions and exchange rate changes.
"These numbers imply that Watchman likely grew more than 30% in the quarter," Kumar said in a note to clients.
Watchman is Boston Scientific's tool to close the left atrial appendage, a small pouch on the left side of the heart that acts as a decompression chamber. In some patients, that part of the heart becomes diseased, causing an irregular heartbeat.
On today's stock market, BSX stock advanced 1.2% to 41.79.
BSX Stock: Earnings Miss
Overall, third-quarter sales increased 8.1% on a strict, as-reported basis to $3.17 billion. That beat BSX stock analysts' expectations for $3.14 billion. Organically, sales advanced 11.5%. The organic number beat out Boston Scientific's own guidance for 8%-10% sales growth.
But adjusted earnings of 43 cents per share lagged views by a penny. On a year-over-year basis, earnings inched ahead 4.8%.
Medical-surgical sales advanced 6.5% on a reported basis to $1.21 billion. Organic growth was 9.8%. That was in line with expectations, Kumar said. He also noted strength from the company's urology and women's health businesses offset weakness from its neuromodulation sales. The latter includes products that use electrical signals to help mask pain.
For the year, Boston Scientific predicted adjusted earnings of $1.71-$1.74 per share, below views for $1.76. Its expectations for 6.5% sales growth, on a reported basis, indicate roughly $12.66 billion in sales. BSX stock analysts called for $12.73 billion in sales.
Organically, Boston Scientific expects sales to grow 9%.
BSX stock is forming a cup-with-handle base and a buy point at 42.47, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
