August 21, 2018 / 12:41 PM / a year ago

Medtronic beats profit estimate on cardiac business growth

(Reuters) - Medical device maker Medtronic Plc posted a better-than-expected quarterly profit on Tuesday, helped by higher sales in its top-selling cardiac and vascular unit, underpinning strength across its businesses.

Shares of the Dublin-based company rose 4 percent to $93.50 in premarket trading.

The cardiac and vascular unit that makes defibrillators, pace-makers, heart valves and stents raked in revenue of $2.81 billion, beating analysts’ estimate of $2.77 billion, according to Thomson Reuters I/B/E/S.

Evercore ISI analyst Vijay Kumar said all eyes were focused on Medtronic’s first-quarter print given the recent run in stock and the company came through solidly and beat the high end of expectations.

“What impressed us was the solid all-around performance across all the segments, and growth was balanced across geographies,” he added.

The company continues to expect full-year earnings to be in the range of $5.10 to $5.15 per share.

Net income attributable to Medtronic rose to $1.08 billion, or 79 cents per share, in the first quarter ended July 27, from $1.02 billion, or 74 cents per share, a year earlier.

Excluding items, it earned $1.17 per share, beating analysts’ expectations of $1.11 per share.

Net sales fell marginally to $7.38 billion, but still came above the average analyst estimate of $7.24 billion.

Reporting by Saumya Sibi Joseph and Aakash Jagadeesh Babu in Bengaluru; Editing by Shailesh Kuber

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