Boston Scientific (NYSE:BSX) shares rose more than 3% in pre-market trading on Wednesday after the medical device manufacturer reported second-quarter earnings and revenue that exceeded Wall Street expectations, supported by broad-based growth across its business.
The company reported earnings of $0.86 per share for the quarter, ahead of analysts’ consensus estimate of $0.83.
Revenue increased to $5.44 billion, representing 7% operational and organic growth and surpassing market expectations of $5.37 billion.
Broad-Based Growth Across Business Segments
Boston Scientific delivered growth across both of its core operating divisions during the quarter.
The MedSurg segment recorded reported net sales growth of 5.9%, with operational and organic growth of 5.4%.
Meanwhile, the Cardiovascular business continued to outperform, posting reported net sales growth of 8.3%, while operational and organic growth reached 7.8%.
International Markets Support Revenue Growth
The company also reported strong performance across its major geographic regions.
In the United States, net sales increased 6.2% on both a reported and operational basis.
The Europe, Middle East and Africa (EMEA) region recorded reported growth of 6.1%, with operational growth of 4.2%.
Asia-Pacific (APAC) delivered the strongest performance among the major regions, with both reported and operational sales increasing 11.2%.
Revenue in Latin America and Canada climbed 22.4% on a reported basis and 16.2% on an operational basis.
CEO Highlights Long-Term Growth Strategy
Chairman and Chief Executive Officer Mike Mahoney said: “Our team delivered a solid quarter while continuing to navigate a dynamic environment. We are focused on disciplined execution and prioritizing investments in our highest-impact opportunities, and we remain confident in Boston Scientific’s long-term growth, anchored by our category leadership strategy and our commitment to meaningful innovation for patients and physicians.”
Updated Guidance Falls Short of Market Expectations
Despite the stronger-than-expected second-quarter performance, Boston Scientific issued earnings guidance that came in below analysts’ forecasts.
For the full year, the company expects earnings per share of between $3.28 and $3.32, compared with the consensus estimate of $3.36.
Boston Scientific continues to forecast organic net sales growth of approximately 5% to 6% for the year.
For the third quarter, the company expects adjusted earnings per share of between $0.80 and $0.82, below analysts’ expectations of $0.84.
The company also forecast reported and organic net sales growth of approximately 3% to 5% during the quarter.
Boston Scientific stock price
