Feb 5 (Reuters) - Medical device maker Boston Scientific ( BSX )
forecast annual profit above Wall Street estimates on
Wednesday, banking on steady demand for its heart devices.
Manufacturers of medical devices have been benefiting from
the elevated demand for elective surgical procedures in the
United States, especially among older adults.
Boston Scientific ( BSX ), which generates most of its revenue from
sales of heart devices such as pacemakers and stents, also
produces equipment for diagnosing and treating a range of
gastrointestinal and pulmonary conditions.
The company expects its 2025 adjusted earnings to be in the
range of $2.80 to $2.87 per share, above analysts' average
expectation of $2.81 at the midpoint, according to data compiled
by LSEG.
Boston Scientific ( BSX ) projected full-year revenue growth between
12.5% and 14.5%, compared with the prior year.
The company's key growth drivers include its stroke
prevention device, Watchman, and Farapulse, which uses short
high-voltage pulses to treat certain abnormal heart rhythm
conditions.
The initial 2025 guide is "strong out of the gates and we
see room for the company to beat and raise through the year with
PFA (Farapulse) as a key driver," RBC Capital analyst Shagun
Singh said.
The results and the forecast "continue to point to a
positive read-through to the rest of the sector," Singh added.
Boston Scientific's ( BSX ) revenue increased 22.4% to $4.56 billion
for the fourth quarter, surpassing expectations of $4.43
billion.
Sales at the company's cardiovascular unit rose nearly 29%
to $2.94 billion in the three months ended Dec. 31, beating
estimates of $2.83 billion.
The company's endoscopy unit, which includes devices used in
surgical procedures that aid in weight loss, reported a 7% rise
in its quarterly revenue of $690 million. Analysts were
expecting the unit to report sales of $695.9 million.
Boston Scientific ( BSX ) earned 70 cents per share on an adjusted
basis in the fourth quarter, topping estimates of 66 cents.