Medtronic beats quarterly estimates on robust demand for heart devices

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Medtronic beats quarterly estimates on robust demand for heart devices.

companies :: 5hrs ago :: source - reuters

By Reuters

(Reuters) - Medtronic beat Wall Street estimates for fourth-quarter revenue and adjusted profit on Wednesday, riding the wave ‌of steady demand for its heart devices used in complex ‌cardiac procedures.

The medical device maker has been pursuing tuck-in acquisitions to strengthen its portfolio following its diabetes business spinoff, focusing on smaller, targeted deals.

In recent months, the company has agreed to acquire SPR Therapeutics for about $650 million and has bought firms such as CathWorks, while also striking ‌deals for Scientia Vascular ⁠and Fortimedix to expand its cardiovascular and surgical robotics offerings.

Medtronic's key growth levers include its pulsed field ablation ⁠systems and its transcatheter aortic valve replacement devices, two minimally invasive cardiovascular technologies seeing rapid adoption.

Revenue for the fourth quarter came in at $9.81 billion, compared with estimates of $9.63 billion, according to data compiled by ‌LSEG.

Sales in the company's cardiovascular segment, which accounts for nearly 40% of sales, jumped 13.8% to $3.8 billion during the quarter, powered by strong demand for its pulsed field ablation portfolio.

Sales in its neuroscience segment rose 5% to $2.75 billion, slightly below analysts' average estimate of $2.76 ‌billion.

On an adjusted basis, Medtronic reported quarterly profit of $1.55 per share, narrowly beating analysts' average estimate of $1.54 per share.

The Dublin-Ireland based company 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 penciled in, according to data compiled by LSEG.

Last quarter, Medtronic said it expects an about $300 million ‌hit from tariffs in fiscal 2027, up from around $185 million in fiscal 2026.

(Reporting by Padmanabhan Ananthan and Christy Santhosh in Bengaluru; Editing by Diti Pujara)

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