Boston Scientific reported first-quarter sales that exceeded the company’s forecast, saying it gained market share across its businesses as demand for procedures using its medical devices rebounded from a year ago.

The company raised its full-year sales and profit forecasts, based on its first-quarter performance.

“We believe that all business units grew faster than their respective markets, with differentiated portfolios and a strong commercial execution supported by healthy procedural demand,” CEO Mike Mahoney told analysts Wednesday on the company’s conference call.

First-quarter net sales climbed 12% to $3.39 billion, compared to the same period a year ago, when the COVID-19 omicron variant was surging.

Boston Scientific is the latest in a string of large medical device makers to report stronger revenues to start the year. Johnson & Johnson, GE HealthCare and Intuitive Surgical also posted sales gains in the first quarter.

“Following a ‘macro recovery themed’ MedTech earnings week one, Boston Scientific’s 1Q23 results clearly reflect and build on that same positive fundamental recovery momentum,” Stifel analyst Rick Wise said in a note to clients.

Q1 Insights

Boston Scientific’s organic sales grew 14% in the quarter, compared to a year ago, exceeding the top end of the company’s forecast range for growth of 6% to 8%. Organic sales exclude the impact of foreign currency fluctuations and recent acquisitions and divestitures.

Among the fastest-growing products during the quarter were the Farapulse pulsed field ablation device to treat atrial fibrillation, which is currently sold in markets outside the U.S. only, and the Watchman left atrial appendage closure device.

Net earnings per share of $0.21 were below the company's projected range of $0.23 to $0.26, reduced by calculations for preferred stock dividends, but adjusted EPS of $0.47 topped the forecast range of $0.42 to $0.44.

J.P. Morgan analyst Robbie Marcus said both sales and adjusted EPS beat analysts’ consensus expectations.

“Cardiovascular sales stood out with a $154 (million) beat,” Marcus wrote in a research note.

M&A Environment

Boston Scientific executives fielded several questions on the earnings call about last week’s report from Bloomberg News that the company may be interested in buying cardiovascular device maker Shockwave Medical. Management declined to comment on the potential for an acquisition, citing the company’s long-standing policy of not commenting on market rumors.

CFO Dan Brennan, when asked about the company’s capital allocation strategy, said Boston Scientific’s first priority remains high-quality, high-growth tuck-in acquisitions in segments adjacent to its current markets.

Outlook

Boston Scientific now expects net sales growth for the full year of about 8.5% to 10.5%, or 8% to 10% percent on an organic basis. The company has projected EPS in a range of $0.93 to $1.02, and adjusted EPS, excluding charges, of $1.90 to $1.96.

For the second quarter, Boston Scientific estimates net sales growth of about 6.5% to 8.5%, or 7% to 9% on an organic basis. EPS is estimated at $0.23 to $0.27, and adjusted EPS at $0.48 to $0.50.

Shares of Boston Scientific fell $0.77, or 1.5% to $50.34 in morning trading on the New York Stock Exchange.