Medical device maker Medtronic (NYSE:MDT) posted a better-than-expected quarterly profit on Thursday, boosted by higher sales at its unit that makes surgical instruments used to treat hernia and kidney ailments.
The company has been building its minimally invasive and robotic surgery device business through acquisitions to ease the impact of rising competition it faces at its top-earning cardiac and vascular unit that makes stents and heart pumps.
The company’s biggest unit, which makes defibrillators, pace-makers, heart valves and stents, earned revenue of $3.05 billion. Analysts were expecting $3.08 billion from the cardiac and vascular business.
Medtronic expects full-year adjusted earnings between $5.44 and $5.50 per share. Analysts had forecast a profit of $5.44.
Net income attributable to the company fell to $1.17 billion, or 87 cents per share, in the fourth quarter ended April 26, from $1.46 billion, or $1.07 per share, a year earlier.
Excluding items, Medtronic earned $1.54 per share, beating analysts’ expectations of $1.46 a share.
Said CEO Omar Ishrak, "Q4 was a solid finish to a strong fiscal year for Medtronic. In fiscal year 2019, we executed and delivered revenue growth, EPS, and free cash flow all above the guidance we set at the beginning of the year.
"Our organization overcame challenges and relied upon the diversification of our business to deliver another quarter of solid top- and bottom-line results, with excellent free cash flow generation."
Shares of the Dublin-based company rose $1.80, or 2%, to $90.56 in early Thursday trading.
