Medtronic posted a profit of $1.24 billion, or 96 cents a share, for the three months ended April 24, compared with $1.06 billion, or 82 cents a share, in the year-earlier period, the company reported Wednesday. On an adjusted basis, which strips out certain one-time items, earnings were $1.55 a share, topping the $1.54 a share analysts polled by FactSet had expected.
Revenue climbed 9.9% to $9.81 billion, ahead of the $9.62 billion Wall Street forecast. On an organic basis, which excludes currency swings and acquisitions, sales rose 6.6%.
Cardiovascular sales jumped 14% to $3.8 billion, making it Medtronic’s largest top-line contributor. Neuroscience sales rose 5% to $2.75 billion, while revenue across its medical-surgical unit climbed 8% to $2.39 billion.
“These results represent the compounding impact of deliberate choices we’ve made to strengthen our strategy, sharpen execution and invest in the areas that will drive our future,” Chief Executive Geoff Martha said. He added that the company saw continued strength across its largest businesses while also building momentum in emerging, high-growth opportunities.
For the current fiscal year, Medtronic guided for adjusted earnings of $5.90 to $6 a share, compared with the $6.05 a share analysts had forecast. The company projected organic revenue growth of 6.8% to 7.3% year-over-year.
Separately, Medtronic raised its quarterly dividend by a penny and said it has made strategic investments in two privately held companies focused on developing intracardiac echocardiography, or ICE, catheter technologies. ICE catheters provide real-time, high-resolution imaging of the heart during electrophysiology procedures, according to the company. Medtronic did not disclose the size of the investments but said they further reinforce the momentum of its cardiac ablation business.