Heart, diabetes devices pump up Medtronic's quarterly profit

  • Medtronic reported a better-than-expected quarterly profit.
  • The results were boosted by strong demand for its heart valves and diabetes devices, such as insulin pumps.
  • Sales in the cardiac and vascular unit, which sells defibrillators, pacemakers, heart valves and stents, jumped 10.1 percent to $3.14 billion in the fourth quarter
Medtronic Chairman and Chief Executive Omar Ishrak.
Reuters
Medtronic Chairman and Chief Executive Omar Ishrak.

Medtronic's fourth-quarter profit topped analysts' estimates on Thursday on higher demand for heart valves and diabetes devices such as insulin pumps.

Medtronic, the world's largest standalone medical device maker, sells everything from minimally invasive therapies to spinal and heart devices, and it has been launching new products to combat increasingly fierce competition.

The company on Thursday also forecast an adjusted profit of $5.10 to $5.15 per share for fiscal 2019, in line with analysts' average estimate of $5.14, according to Thomson Reuters I/B/E/S.

Evercore's Kumar said that considering recent concerns over currency movements, the in-line forecast should provide relief for investors.

The company's shares rose 1 percent in premarket trading.

Cardiac and vascular unit sales jumped 10.1 percent to $3.14 billion in the fourth quarter, beating the average analyst estimate of $3.10 billion.

Rival Edwards Lifesciences last month said its premium-priced transcatheter heart valves had lost market share in Europe to Medtronic.

Sales at Medtronic's coronary & structural heart unit, which houses the transcatheter valves, rose 18.7 percent to $1.01 billion.

The company's diabetes unit sales rose 26 percent to $645 million, helped by strong demand for its new sensor-augmented insulin pump systems.

Net income attributable to the company jumped 25.5 percent to $1.46 billion, or $1.07 per share, in the quarter ended April 27.

Excluding items, the company earned $1.42 per share, beating the average analyst estimate of $1.39.

Revenue rose 2.9 percent to $8.14 billion.