(Reuters) – Boston Scientific raised its annual profit forecast for a second straight quarter on Thursday, banking on resilient demand for its cardiovascular devices as surgical procedure volumes pick up pace.
A recovery in non-urgent surgical procedures and easing staffing shortages at hospitals following a decline in COVID-19 cases have boosted the demand for medical devices, helping companies such as Boston Scientific, which makes pacemakers, stents and catheters.
The Massachusetts-based company now expects full-year adjusted profit to be between $1.96 and $2.00 per share, compared with its prior forecast of $1.90 to $1.96 per share.
Larger rival Abbott Laboratories and healthcare conglomerate Johnson & Johnson, which also has a medical device unit, also topped quarterly profit estimates last week as more patients underwent procedures that were delayed due to the pandemic.
Boston Scientific expects 2023 revenue to rise between 10.5% and 11.5%, compared with its prior outlook of 8.5%-10.5% growth.
The company’s results were in contrast with peer Edwards Lifesciences, which slightly increased sales forecast on slower-than-expected demand for its artificial heart valves.
Boston Scientific’s revenue was $3.6 billion for the quarter ended June 30, beating analysts’ estimate of $3.5 billion, according to Refinitiv data.
The company’s biggest unit, the cardiovascular segment, saw a rise in quarterly sales at $2.24 billion.
Excluding items, Boston Scientific earned 53 cents per share in the quarter, compared with analysts’ estimate of 49 cents per share.
Shares of the company rose about 2% to $53.4 in premarket trading.
(Reporting by Pratik Jain in Bengaluru; Editing by Shilpi Majumdar)
