US Markets
Boston Scientific Cuts Outlook Amid Weak Demand for Watchman Heart Device
Boston Scientific (BSX) lowered its full-year guidance below Wall Street's estimates on Wednesday, citing factors including weak demand for its Watchman heart implant.The medical device maker now expects 2026 adjusted earnings per share of $3.28 to $3.32, down from its previous outlook of $3.34 to $3.41. The FactSet-polled consensus is for $3.36.Full-year net sales are now projected to grow 5.5% to 6.5% from last year, compared with its prior growth estimate of 7% to 8.5% growth. Analysts in a FactSet survey are projecting sales of $21.59 billion, indicating a 7.6% year-over-year growth."Our guidance reduction is concentrated in two areas. First, Watchman, where the US market has slowed sharply and unexpectedly, primarily driven by compounding clinical evidence, which has impacted referral patterns," Chief Executive Mike Mahoney said during an earnings call, according to a FactSet transcript. "And second, (electrophysiology), where we did not anticipate the degree of competitive share movement we're now seeing in the US market."Watchman underperformed expectations in the second quarter, with US sales growing 3% organically, according to a slide deck. Electrophysiology revenue rose 9.1% globally, but was weighed down by competitive pressures in the US.Mahoney flagged a downbeat demand outlook for Watchman for 2026, with global sales likely to be flat to up low single digits."We anticipate that year-over-year concomitant (procedure) growth will materially slow in the second half due to higher comps from 2025," Mahoney said. "Our outlook does not anticipate any improvement in standalone procedural growth trends in the second half."Boston Scientific expects flat second-half global growth for electrophysiology in the US, Mahoney told analysts.Johnson & Johnson (JNJ) raised its full-year outlook earlier this month as its innovative medicine and medical device businesses drove a strong second quarter.For the third quarter, Boston Scientific projects adjusted EPS of $0.80 to $0.82 and net sales growth of 3% to 5%. Analysts are looking for $0.84 and $5.38 billion, respectively.The company reported June-quarter adjusted EPS of $0.86, up from $0.75 a year earlier and surpassing Wall Street's $0.83 estimate. Net sales grew 7.5% to $5.44 billion, while analysts expected $5.36 billion.Sales in the cardiovascular business increased 8.3% year over year to $3.62 billion. The MedSurg division delivered a 5.9% jump to $1.82 billion, led by a double-digit gain in neuromodulation.Boston Scientific's shares rose 0.7% intraday Wednesday, reversing course from earlier in the day. The stock has plunged 51% so far this year.Price: $46.43, Change: $+0.37, Percent Change: +0.80%
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