Medtronic Inc posted quarterly profit and sales ahead of analyst estimates on demand for its devices that protect against irregular heart rhythms.

The world's largest standalone medical device maker, whose shares rose 5 percent, also raised its fiscal-year profit forecast.

They beat on the top line with strong, broad-based revenue growth and they are executing on the bottom line as well in terms of controlling expenses, said Edward Jones analyst Aaron Vaughn.

Analysts said the company's strong showing in implantable cardioverter defibrillators (ICDs) should soothe investors' nerves after rivals Boston Scientific Corp and St Jude Medical issued profit warnings last month.

Net income for Medtronic's fiscal second quarter, ended October 30, was $868 million, or 78 cents a share, compared with $547 million, or 48 cents a share, a year earlier.

Excluding special items, the Minneapolis-based medical device maker said it earned 77 cents a share. Analysts on average expected 74 cents, according to Thomson Reuters


Second-quarter revenue rose 8 percent to $3.84 billion, compared with analysts' average forecast of $3.75 billion.

Revenue from ICDs -- the company's biggest product -- rose to $754 million in the second quarter from $724 million a year earlier. Medtronic is the top ICD maker with about half of the market for the devices.

Gabelli & Co analyst Jeff Jonas said of the ICD sales, They definitely gained some market share there. His firm owns Medtronic shares.

Total revenue in the company's Cardiac Rhythm Disease Management division, which includes both ICDs and pacemakers, increased 3 percent to $1.28 billion.

Revenue from cardiovascular products, including stents to treat clogged arteries, jumped 17 percent to $696 million.

In spinal products, revenue grew 4 percent to $862 million. Revenue from neurological devices that treat pain and other conditions rose 12 percent to $384 million, and diabetes product revenue was up 10 percent to $300 million.

Medtronic raised its fiscal 2010 earnings forecast to a range of $3.17 to $3.22 per share from its previous outlook of $3.10 to $3.20.

They had really good (cost) controls on the bottom line, which I think is what lead them to be able to raise guidance by a pretty good amount, Jonas said.

Shares of Medtronic rose 4.8 percent to $42.23 in premarket trading, from a close at $40.31 Monday on the New York Stock Exchange.

(Reporting by Susan Kelly and Lewis Krauskopf; Editing by John Wallace and Derek Caney)