Boston Scientific's cardiology division was "on fire" in the second quarter, an analyst said Wednesday as BSX stock surged on its second-quarter beat.
Overall, the company reported 6.6% organic sales growth, narrowly topping its own guidance for 3%-6% growth, Evercore ISI analyst Vijay Kumar said in a report to clients. Cardiology sales advanced 8.5% organically, outperforming expectations.
Importantly, sales of Boston Scientific's Watchman soared more than 30%. Watchman is an implantable device that sits in the left atrial appendage of the heart to help reduce the risk of strokes.
On today's stock market, BSX stock surged 6.2% to close at 40.31.
BSX Stock: Guidance Is A Mixed Bag
Total second-quarter sales increased 5.4% on a strict, as-reported basis, to $3.24 billion. That narrowly topped BSX stock analysts' forecast for $3.22 billion. Adjusted profit increased 10% to 44 cents a share and beat expectations by two pennies, according to FactSet.
The total medical-surgical business saw 4.8% organic sales growth. But that missed Kumar's forecast for 6.2% growth. He also noted shortfalls for endoscopy and neuromodulation. The latter uses electrical impulses to mask pain.
Still, Kumar has an outperform rating and 45 price target on BSX stock.
Boston Scientific offered a mixed view for the full year. The company raised its organic sales growth forecast to 8%-9% vs. prior expectations for 6.5%-8.5%. But Boston Scientific cut the high end of its earnings outlook by 2 cents and now expects $1.74-$1.77 per share.
Analysts expect adjusted earnings of $1.76 per share and $12.83 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
