Medical device-maker Medtronic reported a quarterly revenue above analysts' expectations on Tuesday, boosted by demand for its minimally invasive therapies, and the company raised its full year adjusted profit forecast.
The Dublin-based company’s shares rose 2.7 per cent to $107 (€96.54) in premarket trading.
The minimally invasive therapies business, which makes surgical instruments used to treat hernias and kidney disease, brought in revenue of $2.1 billion in the first quarter, above estimates of $2.07 billion, according to data from Refinitiv.
The company now expects full-year adjusted earnings forecast in the range of $5.54 to $5.60 per share, from a prior range of $5.44 to $5.50. Analysts had expected $5.48 per share.
Medtronic’s cardiac and vascular unit, which makes defibrillators, pace-makers, heart valves and stents, brought in revenue of $2.79 billion. Analysts were expecting revenue of $2.75 billion.
Medtronic is headquartered in Ireland although for practical purposes its base of operations remains in the US. Its acquisition of rival Covidien in a $50 billion (€45bn) deal in 2015 was the last big corporate inversion – a controversial arrangement that saw many US companies acquire businesses in Ireland and elsewhere in order to reduce their exposure to high US corporate tax.
The company has a significant physical presence in Ireland, employing around 4,000 people.
Net income attributable to the company fell to $864 million in the first quarter ended July 26th, from $1.08 billion a year earlier.
Net sales rose to $7.49 billion from $7.38 billion, beating estimates of $7.40 billion. – Reuters
