Medtronic 2Q EPS Beats on Global Sales Growth

By Features FOXBusiness

Medtronic (MDT) revealed on Tuesday a stronger-than-expected increase in second-quarter profit, as international sales continued to grow across all of its business segments.

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The Minneapolis-based medical device maker said it earned $871 million, or 82 cents a share, compared with $566 million, or 52 cents a share, in the same quarter last year.

Excluding one-time items, the company earned 84 cents a share, ahead of average analyst estimates polled by Thomson Reuters of 82 cents.

Revenue for the three months ended Oct. 28 was $4.1 billion, up 3% from $3.9 billion a year ago, beating the Street’s view of $4.07 billion.

Contributing to the rise in sales was a 6% increase in its international segment, which makes up about 44% of its total worldwide revenue, fueled by 10% growth in emerging markets. By segment, the company’s cardiac rhythm disease management group saw a 5% increase in sales to $2.21 billion, while its restorative therapies group climbed 6% to $1.925 billion.

“I'm pleased we delivered another quarter of consistent growth in a difficult environment,” Medtronic CEO Omar Ishrak. “A majority of our businesses, and nearly all of our geographies, contributed to this growth.”

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Medtronic reiterated its fiscal non-GAAP earnings guidance in the range of $3.42 to $3.50 a share, which is in line with analyst estimates of $3.44. That view is subject to revenue growth of 1% to 3%.