Medtronic tops Street 1Q forecasts on sales boost
NEW YORK (AP) — Medtronic Inc. on Thursday reported better-than-expected fiscal first-quarter profit on a boost in sales of its heart and surgical devices.
The Dublin-based company earned $820 million, or 57 cents per share, marking a drop from the prior quarter because of higher costs. Earnings, adjusted for amortization costs and non-recurring costs, came to $1.02 per share.
The results surpassed Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of $1.01 per share.
The medical device company reported a 12 percent boost in revenue to $7.27 billion in the period, partly because the period included an extra week. Fourteen analysts surveyed by Zacks expected $7.03 billion.
Sales of heart devices rose 15 percent to $2.57 billion while surgical and monitoring device sales rose 11 percent to $2.46 billion. Sales at the company’s restorative therapy group, which makes neurovascular and other devices, rose 10 percent to $1.81 billion while diabetes group sales rose 15 percent to $445 million.
Medtronic expects full-year adjusted earnings in the range of $4.30 to $4.40 per share. Analysts surveyed by FactSet expect $4.38 per share, on average.
Medtronic shares have dropped roughly 1 percent since the beginning of the year, while the Standard & Poor’s 500 index has dropped slightly more than 5 percent. The stock has risen 12 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MDT at http://www.zacks.com/ap/MDT
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