This post was originally published on this site
A recovery in non-urgent procedures and easing staffing shortages following a decline in COVID-19 cases has boosted the demand for medical devices.
Medtronic (NYSE:MDT), which makes pacemakers, catheters and other tools used in heart surgeries, now expects profit to be between $5.08 per share and $5.16 per share for the fiscal year 2024, compared with the range of $5 to $5.10 per share previously expected.
Analysts were estimating an annual profit of $5.05 per share, according to Refinitiv data.
The Dublin-based medical device maker, however, has previously warned that rising raw material prices and high wages due to inflation could hurt its full-year profit.
The company is looking to reduce costs with measures such as job cuts and offloading some of its smaller businesses to focus on heart and diabetes units.
Medtronic joins rivals, Abbott Laboratories (NYSE:ABT), Stryker (NYSE:SYK) and Boston Scientific (NYSE:BSX), that are benefiting from a rise in non-urgent surgeries.
Sales at Medtronic’s heart devices unit, its biggest revenue driver, increased 5.5% to $2.85 billion for the first quarter, above analysts’ estimates of $2.78 billion.
Medical surgical unit’s revenue came in at $2.04 billion, compared with the estimates of $2.02 billion.
Revenue for the quarter rose 4.5% to $7.70 billion, topping analysts’ average estimate of $7.57 billion.
Its adjusted profit of $1.20 per share for the quarter ended July 28 beat estimates of $1.11 per share.
Shares of the company rose nearly 2% to $82.99 in premarket trading.
