July 23 (Reuters) - Boston Scientific ( BSX ) raised its
annual profit forecast on Wednesday, banking on strong demand
for its heart devices, and trimmed its expectation for
tariff-related costs to half of the previously projected amount.
Shares of the company rose 4.8% in morning trading
following the results.
"Based on the current schedule of expected tariffs, we now
anticipate a full-year headwind of about $100 million, down from
a $200 million estimate," CFO John Monson said during a call
with analysts.
The company expects to offset the remaining tariff impact
through strong sales performance, favorable product mix and
spending control, Monson added.
A rise in surgical procedures has boosted sales for
medical device makers such as Boston Scientific ( BSX ), helping counter
broader concerns about healthcare spending.
Executives credited strong trial results and expanded
product indications for fueling physician adoption of key
cardiovascular devices such as Watchman and Farapulse, the
firm's main growth drivers that saw steady quarterly demand.
The company said the proposed rules by the Centers for
Medicare & Medicaid Services regarding certain cardiac
procedures would further benefit its technologies.
Farapulse, which is approved in the U.S. for some patients
with intermittent atrial fibrillation, competes with Johnson &
Johnson's ( JNJ ) Varipulse and Medtronic's ( MDT ) PulseSelect
in the pulsed field ablation (PFA) market.
Rival Johnson & Johnson ( JNJ ) last week posted strong medtech
sales, aided by its heart devices, Varipulse and Trupulse.
JP Morgan analyst Robbie Marcus said the profit forecast
raise was larger than many had expected, especially given Boston
Scientific ( BSX ) is now moving past the initial U.S. rollout of
Farapulse.
"That said, the outlook still appears conservative to
us," Marcus added.
Boston Scientific ( BSX ) now expects 2025 adjusted profit of $2.95
to $2.99 per share, up from its prior view of $2.87 to $2.94.
It posted adjusted profit of 75 cents per share for the
second quarter, topping analysts' average estimate of 72 cents,
according to LSEG.