Boston Scientific Corp releases quarterly results, says elective surgery recover in July
US: Medical device maker Boston Scientific Corp on Wednesday posted a surprise adjusted quarterly profit and said demand for elective procedures picked up pace in July following an easing of coronavirus-driven restrictions.
The company's shares rose 3.8% to $39.66 in early trade. The stock had declined 15.4% this year till Tuesday's close as Boston Scientific, like its peers, had warned of a sharp hit from the pandemic in April.
"We've seen a very nice, consistent recovery with the sequential improvement," CEO Michael Mahoney said in a post earnings call.
The company said it was seeing a healthy mix of both rescheduled and new patient procedures.
It appears that the hospital systems are doing a much better job of a parallel path in managing COVID-19 patients and doing important elective procedures that patients need, Boston Scientific added.
A broad-based recovery, highlighted by all segments, was impressive, said Evercore ISI analyst Vijay Kumar.
Still, rising new cases of COVID-19 in some states in the United States fueled the possibility of new restrictions.
Excluding items, the company earned 8 cents per share, compared with analysts' estimates for a loss of 2 cents per share, according to IBES data from Refinitiv.
Revenue fell 23.8% to $2 billion, but was ahead of estimates of $1.73 billion.
Given the deferrable nature of Boston's portfolio, this quarter's results should be viewed as "better than feared," said Raymond James analyst Jayson Bedford.