Shares of Medtronic (MDT) - Get Report dipped to $111.08 Tuesday after the medical equipment maker beat Wall Street's second-quarter earnings expectations, but its cardiac and vascular unit missed revenue forecasts.
The Dublin-based company reported net income of $1.36 billion, or $1.01 a share, compared with $1.12 billion, or 82 cents a share, a year ago. Adjusted earnings came to $1.31 a share, beating analysts' expectations of $1.28. Revenue totaled $7.71 billion, up 3% from a year ago and ahead of Wall Street's call for $7.66 billion.
Looking ahead to fiscal 2020, Medtronic affirmed its revenue growth outlook of 4% and raised its adjusted guidance range to $5.57 to $5.63 a share, up from the prior range of $5.54 to $5.60.
The minimally invasive therapies business, which makes surgical instruments and endoscopy products, brought in revenue of $2.14 billion, beating analysts' forecasts of $2.13 billion. However, Medtronic's cardiac and vascular unit posted $2.86 billion in revenue, while analysts had expected $2.87 billion.
U.S. revenue totaled $4.13 billion, representing 54% of company revenue and increasing 2.1%. Non-U.S. developed market revenue of $2.315 billion represented 30% of company revenue and increased 1.4%. Emerging markets revenue of $1.26 billion represented 16% of company revenue and increased 9.4%.
The diabetes group's second-quarter revenue of $596 million increased 2.2%. Diabetes group revenue performance was led by international markets, which grew 14.5%.
Global sales of integrated continuous glucose monitoring sensors grew in the mid-teens on a constant currency basis, driven by global adoption of sensor-augmented insulin pump systems and the resulting strong sensor attachment rates.
"We reported another quarter of solid results, reflecting our continued focus on executing to our commitments across Medtronic," CEO and Chairman Omar Ishrak said in a statement. "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."