By Michael Tobin
Medtronic PLC (MDT) posted fiscal first-quarter results that beat analysts' expectations for adjusted earnings and revenue as sales grew in the U.S. and emerging markets.
The medical device company reported $864 million in net income, or 64 cents a share for the quarter ended July 26, down from $1.08 billion or 79 cents a share during last year's first quarter. Analysts polled by FactSet estimated earnings of 91 cents a share.
On an adjusted basis, Medtronic reported net income of $1.26 a share. Analysts were expecting adjusted income of $1.18 a share.
Medtronic reported $7.49 billion in revenue, a decrease from $7.38 billion during this time last year. Analysts were expecting $7.40 billion in sales. The company saw a 1.4% increase in U.S. sales and emerging markets revenue increased 7.5%. Medtronic said that non-U.S. developed market revenue fell by 1.2%.
The company raised its earnings guidance for fiscal 2020 and reaffirmed its revenue guidance. Medtronic expects earnings between $5.54 and $5.60, up from $5.44 and $5.50. The company said that the new range includes a 10 cent impact it expects from foreign currency exchange.
Medtronic said it expects organic revenue growth of 4% for the year and if currency rates remain the same, the company said revenue growth would decrease by 0.8% to 1.2%.
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Corrections & Amplifications
This article was corrected at 09:36 a.m. ET because the original incorrectly said that Medtronic had previously guided for adjusted earnings per share of $5.54 to $5.50 in the fifth paragraph. Medtronic PLC previously guided for adjusted earnings per share of $5.44 and $5.50 for fiscal 2020.