Medtronic PLC (NYSE:MDT) stock fell 0.38% (As on August 23, 11:38:30 AM UTC-4, Source: Google Finance) after the company  raised its annual profit forecast as the return of non-urgent surgery volumes to pre-pandemic levels boosted demand for its medical devices. Medtronic would not be doing any large or medium-scale divestitures after completing the spin off of its patient monitoring and respiratory interventions businesses, which is expected in the first half of fiscal 2025. The company will focus on heart or diabetes devices related tuck-in deals, which would compliment its existing portfolio. On an organic basis, revenue grew 6%. The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $2.850 billion increased 5.5% as reported and 6.2% organic, with a low-double digit increase in SHA, mid-single digit increase in CRHF, and low-single digit increase in CPV, all on an organic basis.

Moreover, the Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.219 billion increased 4.9% as reported and 5.6% organic, with mid-single digit organic increases in CST, Specialty Therapies, and Neuromodulation. The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Patient Monitoring & Respiratory Interventions (PMRI) divisions. Endoscopy was formerly called the Gastrointestinal business. Revenue of $2.039 billion increased 5.5% as reported and 6.1% organic, with a high-single digit organic increase in SE and mid-single digit organic increase in PMRI. Diabetes revenue of $578 million increased 6.8% as reported and 6.3% organic.

MDT in the second quarter of FY 23 has reported the adjusted earnings per share of $1.20, beating the analysts’ estimates for the adjusted earnings per share of $1.11. The company had reported the adjusted revenue growth of 4.5 percent to $7.70 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $7.57 billion, according to Refinitiv. Analysts said the company’s better-than-expected quarterly results were also aided by its cost-saving measures, such as job cuts, a revamp of its global supply chain and the ongoing process of offloading some smaller businesses, that offset a hit from rising raw material costs.

The Dublin-based medical device maker now expects profit to be between $5.08 per share and $5.16 per share for the fiscal year 2024, compared with the range of $5 to $5.10 per share previously expected. The company increased its FY24 organic revenue growth guidance to 4.5% versus the prior range of 4.0% to 4.5%.