BENGALURU (Feb 21): Medtronic Plc reported better-than-expected quarterly revenue and profit, driven by higher demand for its heart, vascular and minimally invasive products.
Dublin-based Medtronic's shares were up 2.2% in premarket trading on Tuesday.
Medtronic, which gets most of its sales from heart devices, spinal implants and insulin pumps, has been making deals to push into the minimally invasive surgical products market.
The company's net sales rose 5% to US$7.28 billion in the third quarter ended Jan 27, beating the average analysts' estimate of US$7.22 billion, according to Thomson Reuters I/B/E/S.
Sales in Medtronic's cardiac and vascular unit rose 5% to US$2.55 billion, accounting for about 35% of the company's total sales.
Sales of surgical solutions increased 6% to US$1.34 billion, driven by growth in open-to-minimally invasive products.
Given the amount of negativity around Medtronic after last quarter's results, Evercore ISI analysts think the third-quarter results were a solid performance and expect shares to react positively.
In November, Medtronic reported quarterly sales below analyst estimates for virtually all its major product lines.
Among the most important future growth drivers is Medtronic's MiniMed 670G "artificial pancreas", which won U.S. approval in late September, and is the first device to automatically deliver the right dose of insulin to patients with type 1 diabetes.
Leerink Partners analysts said Tuesday's results could suggest some stabilization in businesses that were the primary culprits of last quarter's miss.
Net income attributable to Medtronic fell to US$821 million or 59 cents per share in the third quarter, from US$1.10 billion or 77 cents per share a year earlier.
Excluding items, Medtronic earned US$1.12 per share, above estimates of US$1.11.
In August, Medtronic closed its US$1.1 billion deal for HeartWare International Inc, and has also bought a stake in Israeli robotics company Mazor Robotics Ltd .
The company also reaffirmed its full-year sales and adjusted earnings forecast.