Wall Street heartily embraced Boston Scientific ($BSX) on its first-quarter earnings, driving shares up about 10% in early trading to give the medical device giant a market cap of nearly $30 billion.
The company managed to achieve double-digit organic revenue growth across four of its 7 businesses, an astonishing feat for a medical device company where rapid revenue growth is often tough to achieve. And it staked a claim to continued revenue and EPS growth.
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| Boston Scientific CEO Michael Mahoney |
"We continue to believe that Boston Scientific is uniquely positioned to deliver differentiated shareholder value through durable mid-single digit organic revenue growth and double-digit adjusted EPS growth through our ongoing operating margin and proven initiatives," said President and CEO Michael Mahoney.
Overall, the company posted 8% organic revenue growth, excluding the impact of its AMS acquisition, with total operational revenue growth of 13% to almost $2 billion in revenue during the first quarter.
Peripheral Intervention led with organic growth of 14% due to strong results in atherectomy and thrombectomy as well as in bare-metal and Eluvia drug-eluting stents, Mahoney said. He noted that the pivotal Eluvia U.S. trial is slated to complete enrollment by late this year or early next year.
Interventional Cardiology had organic growth of 13% that was driven by complex coronary, drug-eluting stent, percutaneous coronary intervention guidance and structural heart devices, which includes its Watchman. Mahoney highlighted that the Synergy Coronary Stent had a "very strong quarter."
"We estimate that we added to our market-leading share position in the U.S. and to regain market leadership position in Japan," concluded Mahoney on Interventional Cardiology.
Endoscopy also added 11% organic revenue growth, while Urology and Pelvic Health registered a gain of 12%.
Boston Scientific raised its 2016 guidance to a range of about $8.08 billion to $8.2 billion, up from $7.9 billion to $8.1 billion. It also raised full-year EPS to a range of $0.64 to $0.69 from the prior guidance of $0.62 to $0.67.
Summed up Mahoney, "First quarter results reflect the strength of our portfolio, our ongoing investment in faster growth markets and our globalization efforts. More importantly, we are well positioned to continue our strong performance in 2016 and beyond."
- here is the earnings release