Medtronic Raises Outlook, Invests $780 Million in Heart Tech and Surgical Robotics

Medtronic raised its full-year adjusted earnings-per-share guidance to $5.94 to $6.00, lifting the low end by 4 cents. According to Sina Finance, the company also reported higher first-quarter profit and revenue and increased its full-year outlook after broad-based demand improved across its business segments and contributions from emerging growth platforms. The medical device maker said it will invest about $700 million in Cornerstone Robotics and up to $8 million in Pi-Cardia. Medtronic also reported first-quarter net profit of $1.47 billion, or $1.14 per share, compared with $1.04 billion, or $0.81 per share, a year earlier. Excluding one-time items, earnings were $1.45 per share, above the FactSet consensus estimate of $1.39. Net sales rose 14% to $9.76 billion, topping Wall Street expectations of $9.55 billion, while organic sales also increased 14%. Cardiovascular revenue climbed 20% to $3.93 billion, neuroscience revenue rose 10% to $2.68 billion, and medical surgical revenue increased 10% to $2.28 billion. Medtronic said the Cornerstone Robotics deal gives it distribution rights for the Sentire surgical robot system in selected overseas countries and regions. The company said the system, combined with its Hugo robotic-assisted surgery platform, would expand access to robotic surgery and provide more options and flexible solutions for surgeons and medical institutions. Pi-Cardia said the agreement includes an option for Medtronic to acquire the company if preset performance milestones are met, with the initial purchase price potentially reaching $210 million.