Medical device maker Medtronic on Tuesday reported a quarterly profit that beat analysts’ estimates, driven by strong demand for its heart and vascular devices.
Sales in the company’s cardiac and vascular business, which sells defibrillators, pace-makers, heart valves and stents, rose 5.1 percent to $2.65 billion in the first quarter ended July 28, Medtronic said. The business made up nearly 36 percent of total sales.
Dublin-based Medtronic also backed its full-year earnings and revenue forecasts. It expects adjusted earnings per share to increase 9 percent to 10 percent and revenue to rise 4 percent to 5 percent on a constant-currency basis in the year ending April 2018.
Net income attributable to Medtronic rose to $1.02 billion, or 74 cents per share in the first quarter ended July 28, from $929 million, or 66 cents per share, a year earlier.
Excluding one-time items, the company earned $1.12 per share, beating analysts’ average estimate of $1.08, according to Thomson Reuters I/B/E/S.
Revenue climbed 3.1 percent to $7.39 billion, but missed analysts’ estimates of $7.45 billion.
Medtronic said that an IT system disruption it experienced in June did have “some impact” on overall quarterly performance, but that it was not material to earnings or revenue.