Medtronic quarterly profit beats on strength in surgical products

Earnings

Medical device maker Medtronic on Tuesday beat Wall Street estimates for quarterly profit, driven by higher sales in its surgical products unit and restorative therapies group.

Its fast-growing minimally invasive therapies business, which makes surgical instruments and endoscopy products, brought in revenue of $2.12 billion, above analysts’ expectation of $2.08 billion.

The company said it expects full-year earnings to be in the range of $5.14 to $5.16 per share, up from the prior forecast of $5.10 to $5.15 per share. Analysts had expected $5.12 per share.

Medtronic also raised its 2019 forecast for organic revenue growth to 5.25 percent to 5.5 percent, but said a strong dollar would impact its full-year revenue by about $425 million to $475 million.

Revenue from its restorative therapies division, which makes medical devices and implants to treat neurological disorders and conditions affecting the spine, rose 4.2 percent to beat the average analyst estimate of $2.02 billion.

Net income attributable to Medtronic was $1.27 billion, or 94 cents per share, in the quarter ended Jan. 25, compared with a loss of $1.39 billion, or $1.03 per share, a year earlier, when it recorded a tax-related charge.

Excluding items, the company earned $1.29 per share, beating analysts’ expectations of $1.24 per share, according to IBES data from Refinitiv.

Revenue rose 2.4 percent to $7.55 billion and beat analysts’ estimate of $7.52 billion.

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