Categories Earnings, Health Care

Medtronic (MDT) Q2 results exceed expectations; lifts FY20 EPS outlook

Medtronic plc (NYSE: MDT) reported stronger-than-expected earnings and revenues for the second quarter of 2020. The management also revised up its full-year 2020 earnings guidance. The stock gained about 2% early Tuesday, following the announcement.

Medtronic (MDT) Q2 results exceed expectations; lifts FY20 EPS outlook

Adjusted earnings of the Irish medical technology firm rose 7.4% year-over-year to $1.31 per share. Analysts had forecast earnings of $1.28 per share. Net income, on a reported basis, was $1.36 billion or $1.01 per share, up from $1.12 billion or $0.82 per share last year.

Revenue up 3%

Second-quarter revenues moved up 3% annually to $7.7 billion and surpassed the market’s prediction for $7.66 billion. Revenues of the Cardiac and Vascular Group, the company’s largest unit, was almost unchanged at $2.86 billion. The Minimally Invasive Therapies Group and Restorative Therapies Group registered growths of 4.6% and 6% respectively.

Related: Retail space gets busy as firms see opportunity in healthcare

“We reported another quarter of solid results, reflecting our continued focus on executing to our commitments across Medtronic. Our broad-based performance this quarter demonstrates the consistency of our execution, the strength of our innovation, and the benefit of our business and geographic diversification,” said Omar Ishrak, CEO of Medtronic.

Guidance

The management said it continues to expect revenue growth to be about 4%, on an organic basis, in the whole of 2020, with growth accelerating in the second half. The top-line is expected to be negatively affected by 0.8-1.2% if the current exchange rates hold.

The company also revised up its full-year adjusted earnings guidance to the range of $5.57 per share to $5.63 per share from the earlier outlook of $5.54-$5.60 per share. Recent investments in the pipeline have started to pay off, which is expected to translate into revenue growth during the remainder of the year.

Also see: Medtronic Q1 2020 Earnings Conference Call Transcript

Medtronic shares reached a record high prior to the second-quarter report, after gaining steadily since the beginning of the year.

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top