Medtronic Tops Profit Estimate, But Sales Fall Short

Medtronic Plc. said Tuesday it had net income of $1.016 billion, or 74 cents a share, in its fiscal first quarter to July 28, up from $929 million, or 66 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.12, ahead of the FactSet consensus of $1.08. The Dublin-based medical equipment maker said sales rose to $7.39 billion from $7.17 billion, below the FactSet consensus of $7.45 billion. Chief Executive Omar Ishrak said revenue was hurt by a global IT disruption in June and temporary Diabetes sensor supply constraints. "While these temporary issues had affected first quarter revenue growth, we continued to drive operating margin expansion," Ishrak said in a statement. Shares were indicating higher in premarket trade, but have gained 17% in 2017, while the S&P 500 has gained 8.5%.