Shares of Boston Scientific Corp. (BSX) rallied 1.9% in premarket trading on Thursday following the release of their impressive financial results. The medical technology company reported better-than-expected profit and sales figures, primarily driven by the strength of its cardiovascular business. As a result, Boston Scientific also raised its full-year outlook.
Strong Financial Performance
In comparison to the year-ago period, Boston Scientific’s net income rose to $261 million, or 18 cents a share, from $246 million, or 17 cents a share. Their adjusted earnings per share of 53 cents exceeded the FactSet consensus estimate of 49 cents. Meanwhile, the company’s sales grew by an impressive 11.0% to reach $3.60 billion, surpassing the FactSet consensus of $3.50 billion.
Cardiovascular Business Boosts Growth
The stellar sales growth can be attributed to the particularly strong performance of Boston Scientific’s cardiovascular segment. With a notable increase of 12.2% to $2.24 billion, cardiovascular sales played a crucial role in driving the overall revenue surge. Additionally, MedSurg sales also experienced healthy growth, rising by 9.0% to reach $1.36 billion.
Raised Guidance for Future Success
Exciting news for investors is that Boston Scientific now has higher expectations for the future. The company raised its guidance ranges for adjusted earnings per share (adj. EPS) in 2023 to $1.96 to $2.00, up from the previous range of $1.90 to $1.96. Furthermore, they also revised their sales growth forecast for 2023, increasing it to a range of 10.5% to 11.5%, compared to the earlier range of 8.5% to 10.5%. This revised outlook demonstrates Boston Scientific’s confidence in their ability to sustain their growth trajectory.
Over the past three months leading up to Wednesday, Boston Scientific’s stock has had a modest increase of 0.7%. In comparison, the S&P 500 has gained 10.4% during the same period.
Boston Scientific Corp. continues to excel in the medical technology sector, exceeding market expectations and delivering impressive sales growth. With a positive outlook for the future, investors can remain confident in the company’s potential for further success.