Boston Scientific said net income rebounded in the fourth quarter, supported by higher sales of both cardiovascular and medical/surgical products. The company’s shares rose more than 2% to $47.37 in morning trading.
CEO Mike Mahoney, on a conference call, said most of the company’s business units maintained or expanded market share throughout the year, overcoming macroeconomic and supply chain challenges in a strong performance across all geographic regions.
The Marlborough, Mass.-based device maker, a top player in the interventional cardiology market, on Wednesday reported cardiovascular sales climbed 6.4% to $2.0 billion in the latest quarter, led by a 7.5% increase in cardiology devices. The medical and surgical division saw a 4.4% bump up in sales, driven by growth of 8.2% in urology products.
Boston Scientific’s report follows heart valve maker Edwards Lifesciences’ release Tuesday of higher fourth-quarter profit and earnings numbers, pointing to an improving healthcare environment as patients return to the hospital for procedures.
During the fourth quarter, Boston Scientific announced an agreement to acquire Apollo Endosurgery to expand its endoluminal surgery portfolio and enter the endobariatric market. The company also said it would acquire a majority stake in Acotec Scientific Holdings, a Chinese medtech company focused on interventional procedures.
Boston Scientific said it has completed enrollment in the Champion-AF head-to-head study comparing its Watchman FLX left atrial appendage closure device to non-vitamin K antagonist oral anticoagulants for stroke prevention in patients with non-valvular atrial fibrillation.
Watchman sales grew 22% organically in the fourth quarter, compared to the same period a year ago, Mahoney said.
The company received approval from the Japanese government for its Agent drug coated balloon to treat patients with in-stent restenosis and coronary small vessel disease. It expects to launch the device in the country in the first half of the year.
Boston Scientific said it expects net sales growth of about 5% to 7% in full-year 2023, compared to the prior year, and earnings on a GAAP basis in the range of $1.11 to $1.21 per share. It forecast adjusted earnings, excluding charges, of $1.86 to $1.93 per share.
For the first quarter, the company sees net sales up 3% to 5% from a year ago, and GAAP EPS in a range of $0.23 to $0.26, with adjusted EPS of $0.42 to $0.44.
BTIG analyst Marie Thibault said the sales forecast was in line with the Wall Street consensus but the adjusted earnings outlook was below expectations.
“While the guide was a bit light, we think it bakes in extra caution on macro headwinds and that 2023 could be another year of revenue beats and raises for BSX,” Thibault said in a research note.