Medtronic lifts profit forecast on medical devices demand, new launches
7:33 am Tuesday, August 20th, 2024
(Reuters) -Medtronic slightly lifted the lower end of its annual profit forecast on Tuesday, banking on sustained demand for its medical devices and growth from its new launches.
Over the past few quarters, medical device makers have been benefiting from elevated demand for non-urgent surgeries, since patients are increasingly opting for procedures deferred during the pandemic.
The company said it was expecting steady growth as it introduces new products and continues to make investments to support those launches.
Earlier this month, the company said it received FDA approval for its first disposable, all-in-one continuous glucose monitor, Simplera.
Medtronic has partnered with Abbott , and will integrate its continuous glucose monitoring sensors with Medtronic’s insulin delivery systems.
Limited U.S. commercial release of its Evolut FX+ Transcatheter aortic valve replacement device was initiated during the quarter, the company said. The device is used to perform minimally invasive surgery for people with heart valve disease.
The company raised the lower end of its 2025 adjusted profit forecast to $5.42 per share from $5.40 earlier, keeping the upper end at $5.50.
Analysts on average were expecting profit of $5.44 for 2025, according to LSEG data.
Quarterly sales at Medtronic’s heart devices unit, its biggest revenue driver, increased 5.5% to $3.01 billion, above analysts’ estimate of $2.92 billion.
Sales at the company’s diabetes unit, rose nearly 12% while sales at its neuroscience unit, rose 4.4%.
Medtronic posted adjusted profit of $1.23 per share for the first quarter, beating estimates of $1.20.
(Reporting by Sriparna Roy and Puyaan Singh in Bengaluru; Editing by Sriraj Kalluvila, Devika Syamnath and Alan Barona)
