By Kamal Choudhury and Kunal Das
April 22 (Reuters) – Medical device maker Boston Scientific slashed its annual profit and revenue growth forecasts on Wednesday, a move analysts said could reassure investors who had long called for a revision, sending shares up more than 8%.
“This could/should hopefully be the reset investors wanted” J.P. Morgan analyst Robbie Marcus.
The Marlborough, Massachusetts-based company now expects 2026 adjusted profit of $3.34 to $3.41 per share, down from its prior forecast of $3.43 to $3.49 per share, and also cut its full-year organic revenue growth forecast to 6.5% to 8%, from a prior range of 10% to 11%.
Speaking at a post-earnings conference call, Chief Executive Michael Mahoney said the revision was “the right thing to do and best reflects the current environment.”
Company executives said three main factors drove the cut to the forecast, including pressure on the company’s Watchman heart device business, faster-than-expected market share losses in its electrophysiology business and weaker-than-expected results in urology.
Analysts at Barclays said although the size of the cut was “surprising,” investors will most likely view it in a positive light, while RBC analysts called it “broadly anticipated” and said the new guidance “establishes a floor off of which Boston Scientific can potentially beat and raise.”
The company said increased competition from Medtronic, Johnson & Johnson and Abbott is weighing on its electrophysiology business, leading to greater share erosion than previously expected.
“We will see less mixed benefit than what we expected at the start of the year,” CFO Jonathan Monson said.
For the first quarter, Boston Scientific posted adjusted earnings of 80 cents per share and revenue of $5.20 billion, both slightly ahead of Wall Street’s expectations.
“Should management be able to now deliver upside to this guide, BSX shares could potentially be the best performing stock from here over the coming 12 months. We don’t see a more mispriced asset in our universe,” Marcus said.
(Reporting by Kunal Das and Kamal Choudhury in Bengaluru; Editing by Tasim Zahid)
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