A rebounding volume of medical procedures fueled a strong first quarter for Boston Scientific Corp., which topped market expectations for both sales and profits.
The company, with significant Minnesota operations, reported adjusted net earnings per share of 47 cents, coming in 3 cents higher than the upper end of consensus projections from Wall Street analysts. Its net income of $300 million was up 209% compared with the same period last year.
"Most every business grew double digits," said Mike Mahoney, CEO of Boston Scientific, in a morning conference call.
The company's stock was essentially unchanged for the day, declining 0.02%, which translated to a loss of 1 cent per share.
"All in all, while we were expecting good results stemming from healthy underlying procedural trends and product momentum, this result well exceeded our expectations," wrote Robbie Marcus, an analyst with J.P. Morgan, in a research note on the results.
Boston Scientific's first quarter sales were up 12% to $3.4 billion.
"Cardiovascular sales stood out," noted Marcus. Cardiovascular sales were up 12.7% for the quarter.
Given its momentum, the company boosted its guidance for 2023. Looking ahead, the company now sees net sales growth of 8.5% to 10.5% for the full year.
Mahoney sees room for further gains in procedure volume.
"The nursing shortage is still a challenge but has improved," said Mahoney.
The Watchman device, which reduces stroke risk for patients with atrial fibrillation and can also get them off blood thinners, remains a growth engine for the company.
Boston Scientific has approximately 8,700 employees in Minnesota. The company recently completed a new building on its Maple Grove campus to accommodate Watchman sales growth.
Mahoney said that organic sales of Watchman were up 29% for the first quarter.
