(Reuters) – Boston Scientific raised its annual profit forecast and exceeded Wall Street’s estimates for third-quarter profit on Wednesday, driven by robust demand for its heart devices, sending its shares higher 1.1% to $88.94 in premarket trading.
Medical device makers have been benefiting from elevated demand for non-urgent surgeries in recent quarters, as Americans, especially the elderly, catch up on procedures deferred during the pandemic.
Larger rival Abbott Laboratories raised its annual profit forecast slightly last week, on strong demand for its medical devices, including those used to manage diabetes.
Boston Scientific, which generates most of its revenue from sales of its heart devices such as pacemakers and stents, also makes equipment for diagnosing and treating a range of gastrointestinal and pulmonary conditions.
It now expects 2024 adjusted earnings per share of $2.45 to $2.47, compared with its previous per-share forecast range of $2.38 to $2.42. Analysts expect a profit of $2.41 per share for the year, according to estimates compiled by LSEG. The Massachusetts-based company’s revenue increased 19.4% to $4.21 billion for the quarter ended Sept. 30, compared with analysts’ expectation of $4.04 billion.
Sales at its cardiovascular unit rose 25% to $2.73 billion, beating analysts’ average estimate of $2.62 billion.
Boston Scientific struck a $1.6 billion deal in June to buy Silk Road Medical, to gain access to its medical devices used for stroke prevention. It also markets its own stroke prevention product, branded Watchman.
The company’s endoscopy unit, which includes devices used in surgical procedures that aid in weight loss, reported revenue of $678 million, up nearly 8% from a year earlier. Analysts had expected the unit to report sales of $676.6 million.
On an adjusted basis, Boston Scientific earned 63 cents per share in the reported quarter, compared with an estimate of 59 cents per share.
(Reporting by Mariam Sunny in Bengaluru; Editing by Pooja Desai)