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