Medtronic lifts annual profit view on strong demand for medical devices

(Reuters) -Medtronic lifted the lower end of its annual profit forecast for a second time on Tuesday, banking on sustained demand for its medical devices in the United States.

As negative impacts from foreign currency fluctuations abate, the company expects to report high-single-digit growth in adjusted earnings per share in the back half of the fiscal year, said Gary Corona, Medtronic (NYSE:)’s interim chief financial officer.

The Ireland-based company raised the lower end of its 2025 adjusted profit forecast to $5.44 per share from $5.42 earlier, keeping the upper end at $5.50. The new midpoint of $5.47 is slightly higher than analysts’ estimates of $5.45, according to data compiled by LSEG.

Investors had set a high bar for results from medical device makers as the companies continue to benefit from healthy demand for non-urgent surgeries, especially among older Americans, over the last few quarters.

Peers Boston Scientific (NYSE:) and Abbott had also raised their annual profit forecasts last month.

Medtronic’s total revenue for the quarter ended Oct. 25 rose 5.3% to $8.40 billion, compared with estimates of $8.27 billion.

The heart devices unit, its biggest revenue driver, posted a 6.1% increase in sales to $3.10 billion, above estimates of $3.06 billion.

The diabetes unit reported a 12.4% jump to $686 million, while the neuroscience segment’s sales rose 7.1% to $2.45 billion, beating expectations.

Its medical surgical unit brought in $2.13 billion, in line with estimates.

The company posted adjusted profit of $1.26 per share for the second quarter, compared with estimates of $1.25.

Its shares were marginally lower in premarket trading.