Key takeaways
- Better-than-expected sales of heart and diabetes devices helped Medtronic beat fiscal third-quarter earnings and sales estimates.
- The medical device firm also raised its outlook for the entire current fiscal year that will end at the end of April.
- Medtronic said it would exit its loss-making ventilator business and combine the remaining parts of its Patient Monitoring and Respiratory Interventions division into a single unit.
Medtronic PLC Stock (MDT) gained Tuesday after the medical technology company posted better-than-expected results and raised its guidance on rising demand for its heart and diabetes devices.
The company reported the third quarter of fiscal 2024. earnings per share (EPS) of $1.30, and revenue increased 4.7% to $8.09 billion. Both were above forecasts.
Sales of its cardiac devices unit, the largest revenue According to the source, they increased 6.1% to $2.93 billion. Sales of diabetes units increased 12.3% to $640 million. Those also exceeded estimates.
CEO Geoff Martha said medtronic continues to “generate lasting revenue growth, with particular strength in multiple businesses, as well as international markets,” where it has expanded access to its products.
Medtronic now expects full-year earnings per share in a range of $5.19 to $5.21, up from its previous outlook of $5.13 to $5.19.
Additionally, the company noted that it would exit its unprofitable ventilator product line and combine the remaining parts of its Patient Monitoring and Respiratory Interventions (PMRI) division into a business called Acute Care and Monitoring (ACM). He added that the move “allows for greater investment in ACM with a focus on profitable growth."
Medtronic shares rose 2% to $86.16 as of 2:00 p.m. ET on Tuesday.