Medtronic 2nd Quarter Profits Fall Short, But Top Wall Street Expectations

NEW YORK (AP) — Medical device maker Medtronic on Thursday reported a 37 drop in its fiscal second-quarter profit on higher costs, but its adjusted results topped Wall Street expectations. The company narrowed its profit outlook for the year.

The Dublin-based company reported its profit fell to $520 million, or 36 cents per share. Earnings, adjusted for pretax expenses and amortization costs, were $1.03 per share, topping Wall Street expectations. The average estimate of 21 analysts surveyed by Zacks Investment Research was for earnings of $1 per share.

Revenue rose 62 percent to $7.06 billion in the period, mainly on a boost in the sale of heart devices. Still, those results missed Street forecasts. Twenty analysts surveyed by Zacks expected revenue of $7.08 billion.

Sales of heart devices rose 9 percent to $2.49 billion while surgical and monitoring device sales rose 3 percent to $2.36 billion. Sales at the company's restorative therapy group, which makes neurovascular and other devices, rose 5 percent to $1.77 billion while diabetes group sales rose 11 percent to $450 million.

Medtronic PLC, which has offices in Minneapolis, expects full-year earnings in the range of $4.33 to $4.40 per share, narrowed from a prior range of $3.30 to $3.40 per share.

Its shares rose $1.70, or 2.2 percent, to $77.81 in afternoon trading Thursday. Medtronic shares have risen almost 4 percent over the past year.

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