Medtronic (NYSE:MDT) disclosed a 2.2% dip in fiscal fourth-quarter profits on Tuesday, but the medical-device maker’s adjusted profits and revenue exceeded Wall Street’s expectations.
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Shares of the maker of insulin pumps and defibrillators rallied more than 3% on the earnings beat and newly issued outlook for the full year.
Medtronic said it earned $969 million, or 95 cents a share, last quarter, compared with a profit of $991 million, or 94 cents a share, a year earlier.
Excluding one-time items, the company earned $1.10 a share, besting the Street’s view of $1.03.
Revenue increased 4% to $4.46 billion, narrowly topping consensus calls from analysts for $4.38 billion.
International sales jumped 7% when measured in constant currency and now account for 47% of global revenue. Emerging market revenue soared 14% to $521 million on a constant currency basis.
"With our scale and breadth of innovative technology, Medtronic is clearly outperforming the market,” CEO Omar Ishrak said in a statement.
Looking ahead, Medtronic forecasted fiscal 2014 EPS of $3.80 to $3.85, compared with estimates on Wall Street for $3.84. Full-year sales are seen rising 3% to 4%.
The markets cheered the results, driving Minneapolis-based Medtronic up 3.55% to $51.66 in premarket trading Tuesday morning. Medtronic had already been up nearly 22% on the year as of Monday’s close, outperforming the broader markets.