Medtronic Profit Narrows But Sales Up 7%

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Medtronic (NYSE:MDT) reported on Tuesday a narrowed first-quarter profit that matched Wall Street expectations, however revenue soared and the company stood by its fiscal outlook on heightened global expansion efforts.

The company said it was helped by 25% growth in emerging market sales as its new chief, Omar Ishrak, focused on efforts to globalize. Last quarter, international sales accounted for 46% of Medtronics worldwide revenue.

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My top priority is aligning the management team around improving execution and optimizing sources of growth, Ishrak said in a statement. In order to drive growth, we will be focused on three key imperatives improving execution, optimizing innovation, and accelerating globalization.

The Minneapolis-based medical device maker posted net earnings of $821 million, or 77 cents a share, compared with $830 million, or 76 cents a share, in the same quarter last year.

Excluding special items, the company earned 79 cents, matching average analyst estimates in a Thomson Reuters poll.

Revenue for the three-months ended July 29 was $4.05 billion, up 7% from $3.77 billion a year ago, beating the Streets view of $3.98 billion.

While the company saw growth across many of its businesses, Medtronic said it still faced challenges in its implantable cardioverter defibrillators [ICDs] and spinal products.

Yet, the company stood by its revenue and earnings outlook for fiscal 2012 and said it expects revenue to grow at a steady 1-3%. Earnings are expected to be in the range of $3.43 to $3.50 a share, Medtronic said.

Wall Street is looking for a fiscal profit of $3.45.