Boston Scientific raises 2025 profit forecast on strong heart device sales
Boston Scientific
raised its annual profit forecast after strong sales of its heart devices helped beat Wall Street expectations for
first-quarter profit
.
Shares of the medical device maker soared nearly 10 per cent in premarket trading, as the raised forecast alleviated investor concerns about the impact of U.S. President Donald Trump's sweeping tariffs, particularly on China.
The revised forecast came in "much better than expected even after reflecting tariffs", J.P.Morgan analyst Robbie Marcus wrote in a client note.
Boston Scientific raised its forecast for 2025 adjusted earnings per share to a range of $2.87 to $2.94 from between $2.80 and $2.87 per share earlier.
Medical devices manufacturers have benefited from elevated demand for
non-urgent surgical procedures
in the U.S., especially among older adults, since the second half of 2023.
The trend is expected to continue this year, after health insurance giant UnitedHealth Group
lowered its annual outlook last week, citing sustained high demand for medical care.
On Wednesday, Boston Scientific projected an annual revenue growth of 15% to 17% from last year.
The company's first-quarter revenue rose 20.9% to $4.66 billion, above estimates of $4.57 billion, according to data compiled by LSEG.
Sales at its
cardiovascular unit
, which sells
Watchman devices
for stroke prevention, rose 26.2% to $3.08 billion, beating analysts' estimates of $2.97 billion.
The Massachusetts-based company's key growth drivers are heart devices, including Watchman, and Farapulse, which uses short high-voltage pulses to treat certain abnormal heart rhythm conditions.
In the first quarter, it earned 75 cents on an adjusted basis, topping estimates of 67 cents.
Separately, the medical device maker said its finance chief Dan Brennan would retire by June-end after 30 years with the company.
Jon Monson, who is currently senior vice president of investor relations, will succeed Brennan, the company said.
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