Medical device manufacturer Medtronic (MDT) has lifted its annual profit forecast after posting better-than-expected financial results.
The company, which is based in Dublin, Ireland, said its strong earnings are due to growing demand for its medical devices, particularly those used in heart and gastrointestinal procedures.
Medtronic’s quarterly revenue increased 4.5% to $7.70 billion U.S., topping Wall Street consensus estimate of $7.57 billion U.S.
The company’s earnings per share (EPS) came in at $1.20 U.S., which was better than the $1.11 U.S. forecast by analysts who cover the company and its stocks.
Looking ahead, Medtronic, which makes pacemakers, catheters, and other devices, said it now expects its full-year profit to be between $5.08 U.S. and $5.16 U.S. a share, up from a prior range of $5 U.S. to $5.10 U.S.
Analysts were expecting a full-year profit of $5.05 U.S. per share.
Medtronic said it is benefiting from a rise in non-urgent surgeries coming out of the Covid-19 pandemic when many elective procedures were put on hold.
Sales at Medtronic's heart devices unit, its biggest revenue driver, increased 5.5% in the latest quarter to $2.85 billion U.S., which was above analysts' estimates of $2.78 billion U.S.
The stock of Medtronic has declined 12% over the last year to trade at $81.61 U.S. per share.
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