(Reuters) - Medtronic Plc (MDT.N) beat analysts’ estimates for quarterly profit on Tuesday, boosted by higher demand for its surgical instruments and diabetes devices, and the medical device maker raised its forecast for full-year adjusted profit as well.
The Dublin-based company’s shares rose as much as 5.3% to $109.70, hitting an all-time high.
Sales at all four of Medtronic’s businesses came in above Wall Street estimates for the first quarter.
The company raised its adjusted profit forecast for the year by 10 cents and now expects profit of $5.54 to $5.60 per share, up from a prior range of $5.44 to $5.50.
Analysts had expected $5.48 per share, according to IBES data from Refinitiv.
Growth rate is expected to accelerate in the later half of fiscal 2020, as the company brings multiple new products to the market over next several quarters, Chief Executive Officer Omar Ishrak said on a post-earnings conference call.
“This is probably as good as one could have expected out of Medtronic,” Evercore ISI analyst Vijay Kumar said.
Medtronic has been building its minimally invasive and robotic surgery device businesses through acquisitions to ease the impact of rising competition on its biggest earning business that makes stents and heart pumps.
For an interactive on Medtronic segment sales growth, click here. (tmsnrt.rs/2Z7B7de)
The company’s minimally invasive therapies unit, which makes surgical instruments used to treat hernias and kidney disease, brought in revenue of $2.1 billion in the first quarter, above estimates of $2.07 billion.
Sales at the company’s cardiac and vascular business fell 0.7% to $2.79 billion, above analysts’ expectations of $2.75 billion.
Sales at the unit, which accounts for nearly 40% of the company’s total sales, were hurt by a fall in sales of its heart failure and left ventricular assist devices.
Medtronic competes with Boston Scientific Corp (BSX.N) and Edwards Lifesciences Corp (EW.N) for a share of the lucrative market for transcatheter heart valves, used to replace diseased aortic valves without open-heart surgery.
The U.S. health regulator last week approved Medtronic’s Evolut transcatheter heart valve systems, which the company said expands the available market for less-invasive procedures by about 50%.
Net income attributable to the company fell to $864 million, or 64 cents per share, in the first quarter ended July 26, from $1.08 billion, or 79 cents per share, a year earlier.
Net sales rose to $7.49 billion from $7.38 billion, beating estimates of $7.40 billion.
Excluding items, the company earned $1.26 per share, above estimates of $1.18.
Reporting by Manojna Maddipatla and Aakash Jagadeesh Babu in Bengaluru; Editing by Shounak Dasgupta