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Medtronic beats Street estimates boosted by strong recovery in core business

By Reuters

-Medical device maker Medtronic Plc on Thursday beat Wall Street estimates for quarterly profit and revenue, aided by a recovery in its core business as more people opted for non-urgent procedures such as knee and hip replacements.

U.S. medical device makers have been expecting a boost in deferred procedures to treat the purported backlog of patients who held off on treatment during the COVID-19 pandemic.

The fourth-quarter results reflect a strong recovery from the pandemic’s impact on elective procedures that the company experienced in April 2020, the company said.

The United States has seen an overall improvement in utilization volumes in the medtech sector throughout the first-quarter of this year according to brokerage Credit Suisse.

Sales at Medtronic’s heart devices unit, its biggest revenue driver, jumped 45.1%, meeting analysts’ estimates of $2.91 billion, according to seven analysts polled by Refinitiv.

Chief Executive Officer Geoff Martha said most of the company’s markets were returning to near normal, pre-COVID growth rates.

For full-year 2022, Medtronic, expects profit between $5.60 per share and $5.75 per share. Analysts on average expect $5.72 per share according to Refinitiv IBES data.

Net income attributable to the company rose to $1.36 billion, or $1 per share, in the quarter ended April 30, from $646 million, or 48 cents per share, a year earlier.

Excluding items, Medtronic earned $1.50 per share in the fourth-quarter, beating analysts’ expectations of $1.42 per share.

Revenue for the quarter rose 36.5% to $8.19 billion, ahead of consensus view of $8.14 billion.