April 22 (Reuters) - Medical device maker Boston Scientific cut its annual profit forecast on Wednesday, overshadowing a first-quarter earnings and revenue beat, while its shares were little changed after
earlier volatility.
The Marlborough, Massachusetts-based company now expects 2026 adjusted profit of $3.34 to $3.41 per share, down from its prior forecast of $3.43 to $3.49 per share. Analysts, on average, were expecting $3.45 per share, according to LSEG data.
Boston Scientific did not specify a reason for the revised profit outlook, even as it also cut its full-year organic revenue growth forecast to 6.5% to 8%, from a prior range of 10% to 11%.
"Not surprising to see some initial pre-market volatility given the fairly steep guidance cut," said Leerink Partners analyst Mike Kratky.
"There had been overwhelming investor calls to cut the guide, which the company did, yet the million-dollar question for the call is whether this is due to deteriorating trends in 2Q and beyond or just investor appeasement given how the stock has performed," said J.P. Morgan analyst Robbie Marcus.
For the quarter ended March 31, the company posted adjusted profit of 80 cents per share, slightly above analysts' estimate of 79 cents, while revenue rose to $5.20 billion, ahead of expectations of $5.17 billion.
Sales in Boston Scientific's cardiovascular unit, its largest business, came in at $3.50 billion, topping estimates of $3.43 billion.
The segment, which includes pacemakers and defibrillators, has benefited from an aging population, broader physician adoption and technological advances.
Boston Scientific, which competes with Medtronic, Abbott and Johnson & Johnson in the cardiac device market, has been expanding its portfolio through acquisitions.
In January, it agreed to buy medtech firm Penumbra in a $14.5 billion deal, its second-largest acquisition, as it seeks to expand its heart device business and re-enter the neurovascular market.
(Reporting by Kunal Das and Kamal Choudhury in Bengaluru; Editing by Tasim Zahid)
