(Adds shares, company comments, analyst comment)
July 29 (Reuters) - Medical device maker Boston Scientific Corp on Wednesday posted a surprise adjusted quarterly profit and said demand for elective procedures picked up pace in July following an easing of coronavirus-driven restrictions.
The company’s shares rose 3.8% to $39.66 in early trade. The stock had declined 15.4% this year till Tuesday’s close as Boston Scientific, like its peers, had warned of a sharp hit from the pandemic in April.
“We’ve seen a very nice, consistent recovery with the sequential improvement,” CEO Michael Mahoney said in a post earnings call.
The company said it was seeing a healthy mix of both rescheduled and new patient procedures.
It appears that the hospital systems are doing a much better job of a parallel path in managing COVID-19 patients and doing important elective procedures that patients need, Boston Scientific added.
A broad-based recovery, highlighted by all segments, was impressive, said Evercore ISI analyst Vijay Kumar.
Still, rising new cases of COVID-19 in some states in the United States fueled the possibility of new restrictions.
Excluding items, the company earned 8 cents per share, compared with analysts’ estimates for a loss of 2 cents per share, according to IBES data from Refinitiv.
Revenue fell 23.8% to $2 billion, but was ahead of estimates of $1.73 billion.
Given the deferrable nature of Boston’s portfolio, this quarter’s results should be viewed as “better than feared,” said Raymond James analyst Jayson Bedford.
Reporting by Trisha Roy and Mrinalika Roy in Bengaluru; Editing by Devika Syamnath and Shounak Dasgupta
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