Boston Scientific Reports Strongest Quarter In A Decade
Boston Scientific on Wednesday posted not only its best start to a fiscal year in a decade, but also a quarterly performance unmatched since 2005, company officials told investors.
The Marlborough, Massachusetts-based medical device maker’s strong 11 percent year-over-year revenue growth for the three-month period ending March 31 was fueled by sales of its Watchman anti-stroke and Synergy stent devices.
Boston Scientific, which employs roughly 7,100 workers in Minnesota, generated sales of $1.96 billion during the first quarter and earnings of $202 million, or 15 cents per share—a far cry from the $1 million earnings loss reported the same time a year ago.
“Four of our seven businesses achieved double-digit organic revenue growth this quarter, as the high performance of our global team has accelerated our growth profile as a company,” CEO Mike Mahoney said in a statement. “We continue to execute on our product launches, expand into faster growth markets and deliver solutions that address unmet clinical needs.”
Revenue from the company’s urology and pelvic health division swelled 85 percent to $228 million, largely due to the company’s recent $1.6 billion male urology product portfolio purchase from Minnetonka-based American Medical Systems. Gains here pushed the company’s overall medical-surgical sector up 26 percent to $682 million.
Sales from Boston Scientific’s interventional cardiology business sector rose 11 percent to $548 million, attributable to boosts from its Watchman and Synergy products. However, the company’s rhythm management business—often touted as its bread-and-butter—fell 4 percent to $492 million as demand for pacemakers and implanted defibrillators declined.
Nevertheless, CEO Mahoney said the company would be raising their full-year guidance. Fiscal 2016 revenue is now expected to be in the range of $8.075 billion to $8.225 billion with earnings per share falling between $1.06 and $1.10.
Investors cheered the news, boosting shares of the company 11 percent to $21.95 as of midday Wednesday.