Boston Scientific stock surged Wednesday on bullish growth for its cardiovascular division, leading the medical technology player to hike its guidance for the year.
Cardiovascular sales rocketed nearly 26% organically to $3.09 billion, easily beating expectations, Evercore ISI analyst Vijay Kumar said in a report.
Electrophysiology — a means of studying the heart's electrical systems — remained strong, growing 145%. Sales of Watchman, an implantable heart device that reduces the risk of stroke in patients with a common heart rhythm problem, grew 24%. U.S. Watchman sales accelerated about 25%.
"All in all, we think a Beat and Raise to start the year were enough," Kumar said. Buy-side analysts expected an electrophysiology beat and "Watchman US acceleration was a highlight," he added.
On today's stock market, Boston Scientific stock popped 4% to 98.97. That put shares within striking distance of a double-bottom base with a buy point at 104.35, according to MarketSurge. Shares also retook their 50-day moving average.
Top- And Bottom-Line Beat Boosts Boston Scientific Stock
Across all products, sales grew almost 21% on a strict, as-reported basis to $4.66 billion. Organically, sales rose more than 18%. Analysts called for a lower $4.57 billion in sales. Adjusted earnings also advanced nearly 34% to 75 cents per share, easily topping forecasts for 67 cents.
For the year, Boston Scientific now expects sales to grow 15% to 17% on a reported basis and 12% to 14% organically. That's up from its three-months-ago outlook for 12.5% to 14.5% and 10% to 12%, respectively.
The company also projects adjusted earnings of $2.87 to $2.94 per share, up 7 cents per share, at the midpoint, from the previous guidance.
"It was impressive that BSX raised Guide despite incremental tariffs (headwinds)," Kumar said. "BSX is likely one of the few companies that can credibly raise Guide in this environment."
Boston Scientific also announced the retirement of Chief Financial Officer Dan Brennan. He will be succeeded by Jon Monson, senior vice president of investor relations.
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