Boston Scientific raises profit forecast on strength in heart devices unit

Boston Scientific raises profit forecast on strength in heart devices unit

Oct 26 (Reuters) – Medical equipment maker Boston Scientific (BSX.N) raised its annual profit forecast and beat estimates for third-quarter profit on Thursday as a post-pandemic rebound in elective surgeries boosts demand for its heart devices.

A steady recovery in surgical procedures that were deferred during the pandemic, especially by older adults, as well as easing staffing shortages at hospitals have increased demand for medical devices.

Rival Abbott Laboratories (ABT.N) also topped quarterly profit estimates earlier this month on upbeat sales of its glucose monitoring and heart devices.

Boston Scientific’s cardiovascular unit generated revenue of $2.19 billion during the quarter ended Sept. 30, a nearly 12% jump from a year earlier, beating estimates of $2.13 billion for the unit, according to LSEG data.

The Massachusetts-based company generates most of its revenue from sales of its heart devices such as pacemakers and stents.

Analysts have also pointed to increasing demand for the company’s heart product to prevent stroke — Watchman Left Atrial Appendage Closure Device — which is expected to become a blockbuster offering in the next few years.

The high-margin Watchman devices are Boston Scientific’s most important growth driver currently, Jefferies analyst Matthew Taylor said in a note ahead of the company’s results.

The company now expects full-year adjusted earnings per share of $1.99 to $2.02, compared with its prior forecast of $1.96 to $2.00.

On an adjusted basis, Boston Scientific earned 50 cents per share in the quarter, compared with analysts’ average estimate of 48 cents per share, according to LSEG data.