By Tess Stynes
Medtronic Inc.'s (MDT) fiscal second-quarter earnings rose 40%
as the medical device maker said markets for implantable
defibrillators continued to show a trend toward stabilization.
Sales of defibrillators, which shock hearts to stop potentially
deadly rhythm distortions, have long been under pressure from
government scrutiny of implant practices in the U.S., austerity
measures in Europe and general economic uncertainty.
Chairman and Chief Executive Omar Ishrak said "Our second
quarter revenue growth was in-line with our outlook for the year,
and we are performing at or better than the market in almost every
one of our business lines."
For the period ended Oct. 25, Medtronic reported a profit of
$902 million, or 89 cents a share, up from $646 million, or 63
cents a share, a year earlier. Excluding litigation charges and
other items, adjusted earnings were up at 91 cents from 88
cents.
Revenue increased 2.4% to $4.19 billion and was up 3.3%
excluding currency fluctuations.
Analysts polled by Thomson Reuters recently expected per-share
earnings of 90 cents and revenue of $4.18 billion.
Sales in the cardiac rhythm disease management segment, which
includes defibrillators, pacemakers and tools for treating a common
rhythm disorder rose to $1.27 billion, up 5% excluding currency
fluctuations. Overall defibrillators revenue increased 4% while
pacemaker sales grew 2%, excluding currency impacts.
Medtronic's spinal-products business posted a sales decline of
3% excluding currency impacts.
Shares of Medtronic, which affirmed its fiscal-year outlook,
closed Monday at $58.31 and were inactive in recent premarket
trading. The stock is up 42% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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