Medtronic Inc. (MDT: Quote) on Tuesday said its fourth-quarter profit climbed 28 percent helped by sales growth, mainly in emerging markets. The medical devices maker's quarterly results topped Wall Street estimates. For fiscal year 2013, the company projects higher earnings and sales.
"Our growth was broad-based across our businesses and geographies, including strong U.S. launches of the Resolute Integrity drug-eluting stent and RestoreSensor spinal cord stimulator and strong growth in emerging markets," said Omar Ishrak, Medtronic's Chairman and Chief Executive Officer.
The company said the launch of the Resolute Integrity drug-eluting stent resulted in doubling of its U.S. drug-eluting stent market share.
In the quarter, international revenue increased 7 percent reflecting a 19 percent increase in emerging markets. International sales accounted for roughly half of Medtronic's total sales in the quarter.
Net earnings for the fourth quarter climbed 28 percent to $991 million and earnings per share grew 31 percent to $0.94. The latest quarter results included restructuring and litigation charges, nearly offset by a $103 million gain related to Physio-Control divestiture. The prior year results were also hurt by restructuring charges.
Adjusted for such one-time items, earnings per share rose 10 percent to $0.99, beating the consensus estimate of 24 analysts polled by Thomson Reuters by a penny. Analysts' estimates typically exclude special items.
Net sales grew 3 percent to $4.30 billion from $4.17 billion in the prior-year quarter. Analysts expected revenues of $4.23 billion. On a constant currency basis, sales grew 4 percent.
For its fiscal year 2013, Medtronic expects earnings per share in the range of $3.62 to $3.70, representing 5 to 7 percent increase from fiscal 2012. Analysts expect earnings per share of $3.66.
For the year, revenues are projected to grow 2 to 4 percent in constant currencies from last year's $16.184 billion.
Ishrak added, "We are beginning to gain momentum worldwide and are optimistic about our ability to improve long-term growth as we expand globally and identify new opportunities to deliver economic value to the changing health care system."
In pre-market activity, Medtronic shares are currently trading at $37.35, down $0.35 or 0.93 percent.
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by RTT Staff Writer
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