Boston Scientific, Edwards and Dexcom usher in second week of earnings
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The second wave of the medtech industry’s latest earnings season arrives this week, with Boston Scientific, Edwards Lifesciences and Dexcom all set to report their financial results.
Johnson & Johnson, Abbott and Intuitive Surgical made a mixed start to earnings season last week. J&J relied on acquisition-driven growth in cardiovascular sales to offset weakness elsewhere. However, CFO Joe Wolk conceded that adjusted operating medtech sales would likely grow closer to 5% than the previously forecast 6%.
Intuitive had a strong quarter, though, with da Vinci 5 placements coming in well ahead of expectations.
Now, another set of companies will provide a fresh take on key, competitive markets such as diabetes and electrophysiology. Here’s what to look out for:
1. Boston Scientific
Boston Scientific will report its third-quarter results on Wednesday, giving investors a look at the pace at which the electrophysiology market is switching to pulsed field ablation (PFA). Abbott and J&J, which lack approved PFA devices, reported electrophysiology growth year over year of about 12% and 10%, respectively. The companies have benefited from demand for PFA mapping systems but now face competition from Boston Scientific.
Winning approval for the Farapulse mapping system positions Boston Scientific to provide an integrated PFA offering, potentially boosting an electrophysiology unit that J.P. Morgan analysts expect to drive 16% to 17% organic growth this quarter.
Yet, with launches from J&J and Medtronic on the horizon, Needham analysts said Boston Scientific’s electrophysiology growth will slow significantly in 2025.
With PFA competition set to increase, analysts are assessing which other products can drive growth. J.P. Morgan analysts are looking for heart device Watchman to contribute this quarter and accelerate if its label is expanded next year.
Boston Scientific is also set to share transcatheter aortic valve replacement (TAVR) data this month, but J.P. Morgan analysts said investors expect a “negative or lackluster outcome.”
Boston Scientific’s TAVR trial is comparing its device, which is not authorized in the U.S., to commercial products from Edwards and Medtronic. RBC Capital Markets said Boston Scientific could capture 20% of the $3.5 billion market over time, providing another challenge for Edwards.