Medtronic lifts annual outlook following "broad-based" demand for medical devices

Investing.com -- Medtronic (NYSE:MDT) has raised its annual revenue and earnings outlook following "broad-based, diversified" growth across several of the medical device manufacturer's businesses in its fiscal second quarter.

In a trading update, the company, which makes devices used in heart and gastrointestinal surgeries, said it now expects to deliver 2024 organic revenue growth of 4.75%, up from its prior estimate of 4.5%. Diluted adjusted earnings per share are also seen at $5.13 to $5.19, a 4 cent improvement at the midpoint from the previous guidance of $5.08 to $5.16.

Medtronic had already lifted its full-year profit projections earlier this year, citing a rebound in non-urgent operations in the wake of the COVID-19 pandemic.

"Based on the changes we've made to our operating model, incentives, and capital allocation, among other drivers, we've positioned the company to deliver consistent mid-single digit growth on the top line. As we move ahead, translating this durable revenue growth into durable earnings power remains a top priority," said Chief Financial Officer Karen Parkhill in a statement.

Shares were higher in premarket U.S. trading on Tuesday.