One of the world’s biggest medical device maker’s Medtronic Plc (NYSE:MDT) reported fiscal first quarter earnings Tuesday that beat Wall Street estimates, helped by higher sales in its cardiac and vascular business.
Dublin-based Medtronic reported quarterly earnings of US$1.17 per share on revenue of US$7.4bn. This topped the consensus earnings estimate of US$1.11 per share on revenue of US$7.2bn. Revenue fell 0.1% compared to the same quarter a year ago.
Medtronic stock shot up 5.6% to US$95.07 in midday trade.
"We are executing against our plan, growing our markets and driving share gains across multiple businesses and geographies," said Medtronic Plc CEO Omar Ishrak. "Our execution is not only on the top line, but also down the P&L, as we delivered margin expansion through our enterprise excellence program while increasing our investment in R&D."
Medtronic’s solid results were linked to higher sales in its cardiac and vascular business which increased revenue by 6.2% to US$2.81bn. The device maker generates most of its sales from heart devices, spinal implants and insulin pumps.
Analysts at Oppenheimer said the device maker's coronary, heart, brain, diabetes and pain therapies grew above “the corporate average” as the US market displayed robust growth.
"Versus F4Q18, US market growth was higher (6% vs. 5%) and Emerging Market growth lower at 11.2% vs. 15.5%," wrote Oppenheimer analyst Steven Lichtman.
Oppenheimer currently has an Outperform rating on the stock.
-- Updates with analyst comments, stock price --
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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