Irish-headquartered medical device giant, Medtronic beat Wall Street estimates for fourth-quarter revenue and adjusted profit on Wednesday, buoyed by steady demand for its heart devices used in complex cardiac procedures, sending its shares up nearly 5 per cent in premarket trading.
The company also said it has invested in two privately-held firms, California-based Beluga Medical and Shenzhen-based CardioACC, which develop heart-imaging catheter technologies, to expand its cardiac portfolio.
The company recently announced it was setting up a new software team in Galway focusing on its implantable cardiac devices, its first in Europe.
The medical device maker has been focusing on smaller, targeted acquisitions to strengthen its portfolio, while it works through the separation of its diabetes business.
The company has struck several deals in recent months to strengthen its cardiovascular and surgical robotics offerings, including a roughly $650 million (€560 million) acquisition of SPR Therapeutics and deals for CathWorks, Scientia Vascular and Fortimedix.
“Overall, we are encouraged by Medtronic’s growth initiatives,” led by its cardiac ablation and electrophysiology business, said RBC Capital Markets analyst Shagun Singh, adding that the company’s renal denervation treatment for high blood pressure “remains underappreciated”.
Medtronic’s revenue for the fourth quarter ended April 24th came in at $9.81 billion, compared with estimates of $9.63 billion, according to data compiled by LSEG.
On an adjusted basis, it reported quarterly profit of $1.55 per share, narrowly beating analysts’ average estimate of $1.54 per share.
The Dublin-based business forecast adjusted annual profit in the range of $5.90 to $6 per share for fiscal 2027, below the $6.06 per share analysts had pencilled in, according to data compiled by LSEG.
Medtronic’s outlook for 2027 accounts for its diabetes business, now a publicly traded company called MiniMed. The company said it would revise its forecast if the diabetes business is separated before the end of the year.
Medtronic said it now expects a tariff impact of $250 million in fiscal 2027, including $75 million in the first quarter. – Reuters
