Irish medical technology firm Medtronic plc (NYSE: MDT) on Tuesday announced results for the first quarter of 2020 that were better than what analysts had expected. Shares of Medtronic gained 3.45% immediately following the announcement.
Revenues for the quarter inched up 1.5%, or 3.5% on a constant currency basis to $7.493 billion, outbidding the projection of $7.4 billion.
Adjusted net income grew 8% year-over-year to $1.26 per share, versus $1.18 per share expected.
The Cardiac and Vascular Group (CVG), the company’s largest unit, saw revenues decrease 0.7% to $2.79 billion. The company has been seeing revenue declines in this business for the past few quarters.
This was offset by revenue increases of 2.4% at Minimally Invasive Therapies Group, 3.2% at Restorative Therapies Group and 3.5% at Diabetes Group.
Outlook
Medtronic reiterated its revenue growth guidance of 4% and raised its EPS guidance for the fiscal year 2020. The company currently expects adjusted EPS of $5.54 to $5.60, compared to the earlier guidance of $5.44 to $5.50.
Though Medtronic completed the acquisition of Titan Spine in the first quarter, the company had earlier stated that the deal is expected to be immaterial to the fiscal year 2020 adjusted EPS.
Shares of Medtronic have gained 13% so far this year and 2% in the past one month.