Medtronic topped estimates in its latest earnings quarter. The Dublin-based company brought in earnings per share of $1.31, 3 cents ahead of analysts’ estimates. The medtech giant had revenue of $7.7 billion, an increase of 3% as reported or 4.1% organic for 2Q20.
The company increased its fiscal year 2020 diluted non-GAAP EPS guidance from the prior range of $5.54 to $5.60 to a new range of $5.57 to $5.63, including an estimated 9 cents negative impact from foreign exchange based on current rates.
“We reported another quarter of solid results, reflecting our continued focus on executing to our commitments across Medtronic,” Omar Ishrak, Medtronic chairman and CEO said in a release. “Our broad-based performance this quarter demonstrates the consistency of our execution, the strength of our innovation, and the benefit of our business and geographic diversification.”He added, “The first half of this fiscal year has gone well, as we’ve executed to our commitments and delivered better-than-expected results. As we look forward, we’re even more excited about what lies ahead, as the investments we’ve made in our pipeline begin to pay off by accelerating our revenue growth and creating value for our shareholders.”
It has been an extremely busy time for Medtronic. In October, the company began moving toward developing a fully-implantable left ventricular assist device (LVAD). FDA has already granted the LVAD technology breakthrough device designation.
Earlier this month, Medtronic submitted a PMA supplement to expand the indicated population of the Micra pacemaker to patients with AV block and normal sinus rhythm. The decision is based on positive study results from Medtronic’s MARVEL and MARVEL 2 studies.
But perhaps the biggest news of the year for Medtronic came in August when it was announced Ishrak would retire in April of 2020. Geoff Martha, who currently oversees Medtronic's restorative therapies group (and previously led the company's spine business), will succeed Ishrak as CEO on April 27. Ishrak has served as Medtronic’s CEO since June 2011.