Boston Scientific surprised investors Thursday with stronger-than-expected revenue growth of 10 percent during the first quarter, as analysts lauded the medical device manufacturer for another quarter of relatively strong sales.
Based in Massachusetts, Boston Scientific has significant operations in the Twin Cities, including its heart rhythm device unit in Arden Hills for pacemakers and implantable defibrillators.
Sales volume for those devices as well as products used in endoscopy, urology and neurology procedures was surprisingly strong during the quarter, said Mike Mahoney, the company's chief executive, during a conference call with investors Thursday to discuss financial results.
It was the sixth consecutive quarter, Mahoney said, with revenue growth of 10 percent or more. Analysts noted that the "organic" growth rate also was high, meaning revenue excluding the impact of currency exchange and sales from recent acquisitions.
"There is no denying that the [Boston Scientific] growth engine is running on all cylinders," wrote Joshua Jennings, an analyst with Cowen and Co., in a note to investors.
The market reaction Thursday seemed less emphatic, with shares advancing less than 1 percent on the day. Earnings per share fell short of expectations, although analysts attributed the miss to one-time factors.
In February, Boston Scientific announced a recall for one its most promising devices, a next-generation heart valve called Lotus that doctors can implant in patients via a less-invasive procedure.
Wall Street did not fully factor the impact of the recall on earnings estimates, wrote Michael Weinstein, an analyst with JPMorgan Chase, in a note to investors Thursday morning.
