Medtronic raises fiscal 2024 profit view

Medtronic has today beaten second-quarter profit and revenue estimates and raised its annual earnings forecast, banking on strong sales in its surgical and diabetes units.

Medical device makers are seeing higher demand for their products due to a steady recovery in surgical procedures that were deferred during the pandemic, especially by older adults, as well as easing staff shortages at hospitals.

Medtronic, which makes pacemakers, catheters and tools used in heart and gastrointestinal surgeries, joins Abbott Laboratories and Boston Scientific, which have also benefited from soaring demand for non-urgent surgeries.

Sales at Medtronic’s heart devices unit, its biggest revenue driver, increased 5.9%, to $2.92 billion, largely in line with estimates.

Sales at its medical surgical unit were at $2.14 billion, compared with analysts’ average estimate of $2.12 billion. For its diabetes unit, sales stood at $610m, beating an estimate of $588.4m.

The company now expects profit between $5.13 per share and $5.19 per share for the fiscal year ending in April 2024, above the $5.08 per share to $5.16 per share range expected previously.

It also increased its fiscal 2024 organic revenue growth forecast to 4.75% compared to the previous expectation of 4.5%.

On an adjusted basis, Dublin-based Medtronic reported a profit of $1.25 per share for the quarter ended October 27, beating analysts’ average estimate of $1.18 per share, according to LSEG data.

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