Boston Scientific Corp
Industryweek 12752 Boston Scientific 1
Industryweek 12752 Boston Scientific 1
Industryweek 12752 Boston Scientific 1
Industryweek 12752 Boston Scientific 1
Industryweek 12752 Boston Scientific 1

Boston Scientific Rises as CEO Eases Worry on Growth Prospects

Jan. 11, 2017
CEO says revenue growth from existing businesses is accelerating as the company moves into higher-margin and faster-growing areas, but operating profit margin is lower than its competitors’ which might cause further cuts. 

Boston Scientific Corp. (IW 1000/505) shares rose on January 10 after CEO Mike Mahoney forecast earnings and revenue growth for 2017, easing investor concerns amid swirling questions about U.S. insurance coverage and the strength of the global economy.

Mahoney, speaking at the J.P. Morgan Healthcare Conference in San Francisco, said revenue growth from existing businesses is accelerating as the company moves into higher-margin and faster-growing areas.

Sales of structural heart products, including the Watchman device used to avert strokes, will soar to $300 million in 2017, he said.

While the company is focused on improving its operating profit margin, it remains lower than its competitors’, he said, leaving room to cut more cuts.

The device maker has identified the cause of the problem that led it to halt European implants of its Lotus Edge heart valve and has a solution in place, the CEO also said.

The issue with the locking system, which emerged during procedures on six patients, has a relatively simple fix and never put patients in danger, he said.

The company still plans to file for U.S. approval in the second quarter, with clearance expected by the end of the year, he said.

For this year, the CEO expects “double-digit” growth for earnings per share, excluding some items. Analysts anticipate a 14% gain, on average.

By Michelle Fay Cortez

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!