Demand From Emerging Markets Drives Medtronic Q1 Profit

Features Reuters

Medtronic Inc on Tuesday reported higher first-quarter profit that was in line with analysts' expectations as strong sales in emerging markets helped offset soft U.S. demand for medical devices.

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The company, whose products range from implantable heart defibrillators to insulin pumps to brain stimulation devices, also reiterated its outlook for the full year.

Net earnings rose to $953 million, or 93 cents per share, in the quarter ended July 26, from $864 million, or 83 cents per share a year earlier.

Excluding special items, Medtronic earned 88 cents a share, in line with the average analyst estimate, according to Thomson Reuters I/B/E/S.

Total revenue rose 2 percent to $4.08 billion. Sales in emerging markets climbed 15 percent to $504 million.

Overall sales of implantable heart defibrillators declined 3 percent to $655 million, but pacemaker sales were up 2 percent to $474 million. Sales of spinal products fell 3 percent to $765 million.

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Medtronic forecast fiscal 2014 earnings of $3.80 to $3.85 per share and revenue growth of 3 percent to 4 percent on a constant-currency basis.

Medtronic shares closed Monday at $54.10 on the New York Stock Exchange.