Stocks

Boston Scientific Stock Gains on Strong Earnings

Shares of the medical-device company jumped nearly 5% early Wednesday after its third-quarter earnings results exceeded expectations and it slightly increased its full-year guidance.

Shares of the medical-device company jumped nearly 5% early Wednesday after its third-quarter earnings results exceeded expectations and it slightly increased its full-year guidance.

Shares of medical-device company Boston Scientific jumped nearly 5% early Wednesday after its third-quarter earnings results exceeded expectations by 1.9% and it slightly increased its full-year guidance.

Boston Scientific (ticker: BSX) reported earnings of $0.39 per share, one cent better than the S&P Capital IQ Consensus. The company estimated adjusted full-year earnings between $1.55 and $1.58 per share, up from an earlier estimate between $1.54 and $1.58.

The positive earnings appeared to arrest a stock price slide that began late last month.

The company reported organic sales growth of 9.3% compared with last year. “We believe this organic growth performance well exceeded investor expectations of ~8% and should be enough to move shares higher today,” wrote SVB Leerink analyst Danielle Antalffy in a note out Wednesday morning.

The back story. Shares of Boston Scientific were up 8% between the beginning of the year and Tuesday’s close, trailing the S&P 500, which was up 19.5% over the same period. The stock has fallen sharply since late September, when a test of a new heart replacement valve returned disappointing results.

What’s new. In its earnings release, Boston Scientific attributed the quarterly growth to a number of factors across the company.

“Our third quarter results reflect accelerated growth fueled by several key product launches, excellent regional performance and the broad strength of our core portfolio, and we continue to invest in building a robust pipeline,” CEO Mike Mahoney said in a statement.

The company reported quarterly sales of $2.7 billion, exceeding its guidance for reported and organic growth.

Looking forward. Boston Scientific shares were trading up 4.8%, at $40, on Wednesday morning. Antalffy wrote that the metrics in the earnings release should “leave folks encouraged that the BSX top-tier growth story remains solidly on track.” The S&P 500 was flat.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.