Medtronic lifts annual profit view on strong demand for medical devices
8:52 am Tuesday, November 19th, 2024
(Reuters) -Medtronic lifted the lower end of its annual profit forecast for a second time on Tuesday, banking on sustained demand for its medical devices in the United States.
As negative impacts from foreign currency fluctuations abate, the company expects to report high-single-digit growth in adjusted earnings per share in the back half of the fiscal year, said Gary Corona, Medtronic’s interim chief financial officer.
The Ireland-based company raised the lower end of its 2025 adjusted profit forecast to $5.44 per share from $5.42 earlier, keeping the upper end at $5.50. The new midpoint of $5.47 is slightly higher than analysts’ estimates of $5.45, according to data compiled by LSEG.
Investors had set a high bar for results from medical device makers as the companies continue to benefit from healthy demand for non-urgent surgeries, especially among older Americans, over the last few quarters.
Peers Boston Scientific and Abbott had also raised their annual profit forecasts last month.
Medtronic’s total revenue for the quarter ended Oct. 25 rose 5.3% to $8.40 billion, compared with estimates of $8.27 billion.
The heart devices unit, its biggest revenue driver, posted a 6.1% increase in sales to $3.10 billion, above estimates of $3.06 billion.
The diabetes unit reported a 12.4% jump to $686 million, while the neuroscience segment’s sales rose 7.1% to $2.45 billion, beating expectations.
Its medical surgical unit brought in $2.13 billion, in line with estimates.
The company posted adjusted profit of $1.26 per share for the second quarter, compared with estimates of $1.25.
Its shares were marginally lower in premarket trading.
(Reporting by Sriparna Roy and Mariam Sunny in Bengaluru; Editing by Devika Syamnath)
