Boston Scientific trims annual profit forecast on softer Watchman device demand

By Siddhi Mahatole

July 29 (Reuters) - ‌Medical device maker ​Boston ​Scientific cut its annual profit forecast on Wednesday, citing slower growth for its Watchman heart device and tougher competition in ‌its U.S. electrophysiology business.

Shares were down nearly 3% in morning ⁠trade.

The company's updated outlook deepened investor concerns after it warned in May of pressure ‌from softer-than-expected uptake of its ‌heart device Watchman, a key growth driver.

"We now expect the second half to be more pressured than we originally anticipated," CEO Michael ​Mahoney told analysts, calling the updated outlook a "realistic view" of the back half of the year.

Mahoney said the forecast cut reflected weakness ⁠in Watchman and greater-than-expected competitive pressure in the U.S. electrophysiology market, which has led to market share ​losses. He said both trends were expected to persist into 2027.

"We're clearly not pleased with this change. It's not ​the outcome that we planned for," ‌Mahoney said.

Growth in procedures using its Watchman heart device has slowed sharply as physicians increasingly combine the implant with ⁠other cardiac treatments and as shifting clinical evidence disrupts referrals.

RESETTING EXPECTATIONS

J.P. Morgan analyst Robbie Marcus said the magnitude of the forecast cut appeared aimed at setting ⁠a more achievable bar for the second half and reducing concerns that Boston Scientific ​could miss third- and fourth-quarter expectations.

The company said it expects earnings and revenue growth to improve meaningfully in 2028.

Boston Scientific now expects 2026 adjusted earnings of $3.28 to $3.32 ‌per share, compared with its prior forecast of $3.34 to $3.41. Analysts were expecting $3.36 per share, according to LSEG data.

On ‌Monday, Boston Scientific's board approved a new company-wide restructuring plan to cut costs ⁠and support future growth.

It posted ‌second-quarter adjusted profit of ​86 cents per share, above analysts' estimate of 83 cents per share

(Reporting by Siddhi Mahatole in Bengaluru; Editing by ‌Tasim Zahid)

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