NEW YORK (TheStreet) -- Shares of Boston Scientific Corp. (BSX) - Get Report are surging by 11.53% to $21.95 on heavy trading volume late Wednesday afternoon, following the release of its 2016 first quarter results, which beat expectations.
Before the market open, the Marlborough, MA-based medical device company posted adjusted earnings of 28 cents per share, topping analysts' estimates of 24 cents per share.
Revenue spiked by 11% to $1.96 billion year-over-year and was above Wall Street's projections of $1.91 billion.
Results were boosted by higher sales in the company's cardiovascular segment, which is its largest and includes catheters and heart stents, Reuters noted.
Sales in that unit jumped by 11% to $790 million year-over-year.
Results were also lifted by better adoption of the company's Synergy stent and Watchman surgical device for the prevention of strokes, RBC Capital Markets analysts said, according to Reuters.
On Monday, the company said it received FDA approval for a suite of MRI-compatible products, such as pacemakers and pacing leads.
Analysts told Reuters that the FDA's approval of these devices should ease softness in Boston Scientific's cardiac rhythm management unit.
For 2016, the company now projects adjusted earnings per share between $1.06 and $1.10 on revenue of $8.08 billion to $8.23 billion.
Analysts are forecasting earnings of $1.05 per share on revenue of $8.02 billion for the full year.
For the second quarter, Boston Scientific now expects earnings per share in the range of 25 cents and 27 cents on revenue of $2.01 billion to $2.06 billion.
Analysts are looking for earnings of 26 cents per share on revenue of $2.01 billion.
About 38.39 million of the company's shares were traded by late this afternoon compared to its average volume of 8.16 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth.
However, the team also finds weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BSX