(Reuters) - Medtronic Plc (MDT.N) reported quarterly sales and profit above Wall Street estimates, driven by higher demand for its heart, vascular and minimally invasive products.
The medical device maker’s shares rose as much as 2.7 percent to $80.98.
Medtronic, which gets most of its sales from heart devices, spinal implants and insulin pumps, has been making deals to push into the minimally invasive surgical products market.
Among the most important future growth drivers is Medtronic’s MiniMed 670G “artificial pancreas”, which won U.S. approval in September, and is the first device to automatically deliver the right dose of insulin to patients with type 1 diabetes.
“We remain confident in our ability to deliver mid single-digit constant currency revenue growth and double-digit constant currency earnings growth, not only in the current fiscal year but also into the future,” Chief Executive Omar Ishrak said on a post-earnings conference call.
Medtronic said it expects a $20 million-$40 million hit on sales in the fourth quarter due to a strong dollar.
Medtronic’s net sales rose 5 percent to $7.28 billion in the third quarter ended Jan. 27, beating the average analyst estimate of $7.22 billion, according to Thomson Reuters I/B/E/S.
Sales in Medtronic’s cardiac and vascular unit rose 5 percent to $2.55 billion, accounting for about 35 percent of the company’s total sales.
Sales of surgical solutions increased 6 percent to $1.34 billion, driven by growth in open-to-minimally invasive products.
Medtronic’s third-quarter results were solid, given the amount of negativity around the company’s results in the preceding quarter, Evercore ISI analysts said.
In November, Medtronic reported quarterly sales below analyst estimates for virtually all its major product lines.
Leerink Partners analysts said the latest results could suggest some stabilization in businesses that were the primary culprits of last quarter’s miss.
Net income attributable to Medtronic fell 25.4 percent to $821 million, or 59 cents per share, in the third quarter, from a year earlier.
However, excluding items Medtronic earned $1.12 per share, a cent above analysts’ estimates.
Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Maju Samuel and Shounak Dasgupta