The medical device maker topped second-quarter expectations but now sees full-year adjusted EPS of $3.28 to $3.32, down from a prior range of $3.34 to $3.41
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Boston Scientific $BSX posted second-quarter net sales of $5.44 billion and adjusted earnings of $0.86 per share on Wednesday, beating its own guidance, but the company trimmed its full-year profit outlook as demand for its Watchman heart implant fell short of expectations.
The company now expects full-year 2026 adjusted earnings per share of $3.28 to $3.32, the company said. That compares to a prior forecast of $3.34 to $3.41 per share. Analysts had expected full-year adjusted profit of $3.36 per share, according to Reuters.
Boston Scientific also cut its full-year organic sales growth outlook to a range of 5% to 6%, down from a prior range of 6.5% to 8%, the company said.
The Watchman is a device implanted in the heart to block blood clots that can cause strokes in patients who have atrial fibrillation. The drag on that business stems from changing clinical practice — doctors are more often pairing the Watchman with other heart procedures in one visit, which has eaten into the volume of dedicated Watchman-only cases, according to Reuters. Boston Scientific indicated that Watchman revenue is on track to be roughly unchanged in the second quarter and probably the third as well, even as combined-procedure volumes keep climbing.
The quarterly results themselves topped expectations. Second-quarter adjusted EPS of $0.86 came in above the company's guidance range of $0.82 to $0.84. Revenue of $5.44 billion exceeded the high end of the company's guided range of 5.5% to 7.5% reported growth. Analysts had expected quarterly revenue of $5.36 billion and adjusted profit of $0.83 per share.
The cardiovascular segment, which includes the Watchman, posted quarterly net sales of $3.62 billion, up 8.3% from a year earlier. The MedSurg segment generated $1.82 billion in net sales, up 5.9%.
For the third quarter, Boston Scientific projected net sales growth of 3% to 5% and adjusted EPS of $0.80 to $0.82, the company said.
The company's board signed off on a broad restructuring initiative earlier this week. Formally approved on July 21, the initiative involves adjustments to sourcing and logistics, relocating certain manufacturing operations, and restructuring parts of the organization, with a target completion date of late 2029.
Boston Scientific shares gained close to 4% in premarket trading Wednesday after the quarterly beat.
Chairman and Chief Executive Officer Mike Mahoney said in a statement: "We are focused on disciplined execution and prioritizing investments in our highest-impact opportunities, and we remain confident in Boston Scientific's long-term growth."
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