By Siddhi Mahatole and Mrinalika Roy (Reuters) -Boston Scientific raised its annual profit forecast on Wednesday, after beating third-quarter profit estimates on strong demand for its heart devices, sending its shares up 4.1%. The company’s heart device segment, which includes pacemakers and defibrillators, reflected broader industry trends of rising demand due to aging populations, physician […]
Health
Boston Scientific lifts annual profit forecast on strong demand for heart devices
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By Siddhi Mahatole and Mrinalika Roy
(Reuters) -Boston Scientific raised its annual profit forecast on Wednesday, after beating third-quarter profit estimates on strong demand for its heart devices, sending its shares up 4.1%.
The company’s heart device segment, which includes pacemakers and defibrillators, reflected broader industry trends of rising demand due to aging populations, physician adoption and technological innovation.
Boston Scientific alongside peers Medtronic, Abbott and Johnson & Johnson has been investing and expanding its cardiac portfolios.
Larger rival J&J reported a 6.8% increase in medical device sales in the third quarter, driven by its cardiovascular franchise, while Intuitive Surgical highlighted adoption of its robotic platforms for cardiac surgeries, and is developing new instruments and software to expand cardiac opportunities.
Boston’s stroke prevention device Watchman and its Farapulse system for abnormal heart rhythms contributed to a 23.1% year-over-year surge in electrophysiology sales in the quarter.
Truist analyst Richard Newitter said although the segment could have done better, Watchman’s “eye-popping” outperformance will be viewed positively by the market.
Despite these bright spots, the U.S. medtech sector faces challenges in 2025, with regulatory pressures, trade uncertainties and potential tariffs on device imports weighing on investor sentiment.
Boston Scientific reported mid-teens revenue growth in China during the quarter, despite challenges from the country’s bulk procurement program and broader pricing pressures in international markets.
Adjusted operating margin rose 80 basis points from a year earlier to 28%, CFO John Monson said, adding it is expected to expand further despite a $100 million tariff-related headwind.
The company now expects 2025 adjusted profit per share to be between $3.02 and $3.04, up from its prior range of $2.95 to $2.99.
Fourth-quarter adjusted profit per share is expected to be between 77 cents and 79 cents compared to analysts’ estimate of 76 cents per share, according to data compiled by LSEG.
The company posted third-quarter adjusted profit of 75 cents per share, above estimates of 71 cents per share.
(Reporting by Siddhi Mahatole in Bengaluru; Writing by Mrinalika Roy; Editing by Vijay Kishore)