Medical device maker Medtronic beat analysts' estimates for quarterly profit and raised its full-year earnings forecast for the second time on Tuesday, boosted by strong performance in its unit that makes surgical instruments.
The world's largest standalone medical device maker has been beefing up its minimally invasive and robotic surgery device businesses through acquisitions to make up for slowing growth in its top-earning unit that makes stents and heart pumps.
The minimally invasive therapies business, which makes surgical instruments and endoscopy products, brought in revenue of $2.14 billion, ahead of analysts' average estimate of $2.13 billion, according to IBES data from Refinitiv.
But its cardiac and vascular unit missed estimates for revenue. The business reported revenue of $2.86 billion, while analysts had expected $2.87 billion.
Net sales rose 3% to $7.71 billion, beating estimates of $7.66 billion.
Net income attributable to the company rose to $1.36 billion, or $1.01 per share, in the second quarter ended Oct. 25, from $1.12 billion, or 82 cents per share, a year earlier.
Excluding items, the company earned $1.31 per share, topping analysts' average estimate of $1.28.
Medtronic said it now expects 2020 adjusted profit to be in the range of $5.57 to $5.63 per share, up from the prior forecast of $5.54 to $5.60.
Analysts were expecting full-year earnings of $5.56 per share.