10:47 AM EDT, 08/20/2024 (MT Newswires) -- Medtronic ( MDT ) lifted the lower end of its full-year earnings outlook range on Tuesday as the medical device company recorded better-than-expected fiscal first-quarter results.

Adjusted earnings are now expected between $5.42 and $5.50 per share for fiscal 2025, reflecting a higher bottom end than the prior forecast's $5.40 estimate. The consensus on Capital IQ is for normalized EPS of $5.45. The firm continues to anticipate a foreign-exchange headwind of 5% on the bottom line.

Organic revenue is pegged to grow by 4.5% to 5% for the ongoing fiscal year, indicating a higher bottom end from the previous guidance's 4% view. Including the impact of foreign currency and other revenue, the topline is expected to rise by 3.4% to 4.3% on an adjusted basis, the company said.

"We're raising our guidance today as we expect to sustain growth from new product introductions, continue to make the investments to support those launches, and deliver on our commitment to restore earnings power," interim Chief Financial Officer Gary Corona said in a statement.

For the three-month period ended July 26, Medtronic's ( MDT ) adjusted EPS rose to $1.23 from $1.20 last year, which was the Street's view. Revenue improved 2.8% year over year to $7.92 billion, compared with the Street's estimate of $7.9 billion.

Revenue in the cardiovascular portfolio rose 5.5% to $3.01 billion. On an organic basis, the company saw high-single-digit increases in the cardiac rhythm and heart failure and the structural heart and aortic divisions, as well as a mid-single-digit rise in coronary and peripheral vascular. The neuroscience segment logged revenue growth of 4.4% to $2.32 billion.

The medical surgical business sales slipped 0.4% to almost $2 billion. The diabetes segment rose 12% to $647 million.

"Our underlying markets are healthy, we're driving operating rigor, and new product innovation is fueling diversified growth across key health tech markets," Chief Executive Geoff Martha said. "As we deliver innovation and execute on our transformation, we expect this to translate into strong returns for our shareholders."

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