USA—American medical device company Medtronic has raised its annual profit forecast for the third time this fiscal year, driven by robust demand for its heart and diabetes devices.
The surge in sales follows the resumption of non-urgent medical procedures, which had been delayed due to the pandemic.
Medtronic now anticipates adjusted profits for fiscal 2024 to range between US$5.19 and US$5.21 per share, up from its previous forecast of US$5.13 to US$5.19 per share.
Sales in Medtronic’s heart devices unit, its primary revenue generator, climbed 6.1 percent to US$2.93 billion, surpassing analysts’ expectations of US$2.89 billion.
Similarly, the diabetes unit reported sales of US$640 million, exceeding analysts’ estimates of US$601.9 million.
In the third quarter (Q3), Medtronic recorded a revenue increase of 4.7 percent to US$8.09 billion, outpacing analysts’ average estimate of US$7.95 billion.
The company posted an adjusted profit of US$1.30 per share for the quarter, surpassing analysts’ projection of US$1.26 per share.
Concurrently, Medtronic has opted to discontinue its ventilator product line within its patient monitoring and respiratory interventions (PMRI) business, citing insufficient profitability. This strategic move aims to streamline operations and position Medtronic for future growth.
As part of this decision, the remaining PMRI operating units will be consolidated into a single entity called “acute care and monitoring.”
CEO Geoff Martha had previously announced intentions to separate the PMRI business, which is integral to Medtronic’s medical surgical portfolio.
Furthermore, as part of the restructuring, Medtronic anticipates incurring an adjusted charge of US$350 million to US$425 million in the fourth quarter.
Additionally, these operational changes would eliminate the position of executive vice president and president of medical surgical portfolio, currently held by Robert White. White will leave the company effective April 26.
Raman Venkatesh named Chief Sustainability Officer
Meanwhile, Medtronic has appointed Raman Venkatesh as its first Chief Sustainability Officer, tasked with spearheading the development and execution of the company’s environmental sustainability strategy.
Venkatesh brings a wealth of experience from his previous roles, including Executive Vice President at Danish sustainability technology company Aquaporin and advisory positions at Tau Ventures.
Medtronic’s environmental goals encompass achieving operational carbon neutrality by 2030 and net zero emissions by 2045, including Scopes 1, 2, and 3 emissions.
The company also aims to source 50% of its energy from renewable and alternative sources by 2025, while reducing water usage intensity and waste intensity by 15%.
Ken Washington, Medtronic’s Senior Vice President and Chief Technology and Innovation Officer, expressed his confidence in Raman Venkatesh’s appointment, envisioning their collaboration to drive Medtronic’s sustainability journey forward, ultimately benefiting both patients and the planet.
Be the first to leave a comment