By Bageshri Banerjee
May 5 (Reuters) – Medical device maker Solventum said on Tuesday it expects annual profit to be at the higher end of its previous forecast range, primarily driven by strong demand for its wound care and sterilization products.
Shares were down about 2% in extended trading.
The company said it now expects full-year profit to come in at the higher end of its prior $6.40 to $6.60 per-share forecast, implying a midpoint above analysts’ expectations of $6.44.
“We delivered first-quarter results ahead of our plan and ahead of expectations. Organic sales growth and EPS both exceeded our plan, again reflecting very strong execution across the organization and the momentum that we’ve already built,” CEO Bryan Hanson said.
After more than a year under pressure from activist Trian Fund Management, Solventum faced fresh demands last week from the Nelson Peltz-founded firm to cut overhead costs, sell non-core businesses and improve capital allocation as part of a turnaround push.
The Minnesota-based company is one of the largest providers of sterilization devices, wound dressings, medical tape and other hospital consumables.
Solventum’s MedSurg business, which sells wound dressings and surgical equipment, accounts for more than half the company’s revenue. Sales in the segment rose 6.6% from a year earlier to $1.23 billion during the quarter.
The company’s quarterly revenue came in at $2.01 billion, beating analysts’ estimates of $1.97 billion, according to data compiled by LSEG.
On an adjusted basis, it earned $1.48 per share, compared with estimates of $1.35 per share.
(Reporting by Bageshri Banerjee; Editing by Tasim Zahid)
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