Medtronic shares went up in premarket trading on Tuesday after the company posted stronger-than-expected quarterly earnings and said it would invest $700 million to grow its surgical robotics business.
For its fiscal first quarter ending July 31, Medtronic reported adjusted earnings of $1.45 per share, up from $1.26 last year and above Wall Street’s estimate of $1.39. Revenue increased 14% to $9.76 billion, beating the consensus estimate of $9.55 billion, according to FactSet.
The company, which makes medical devices like pacemakers and insulin pumps, raised its forecast for organic revenue this fiscal year and gave a more specific profit outlook.
Medtronic also announced a $700 million investment that gives it rights to distribute Cornerstone Robotics’ Sentire surgical system in several important markets outside the U.S.
Shares climbed 8.7% in premarket trading on Tuesday, bouncing back after a small drop on Monday. However, the stock was still slightly down for the year as of Monday’s close.
