Medical device maker Medtronic, Inc. (MDT: Quote) reported Tuesday a profit for the first quarter that increased from last year, reflecting the continued strong growth in emerging markets. Adjusted earnings per share for the quarter met analysts' expectations, while quarterly revenues breezed past estimates by a whisker. The company also reaffirmed its earnings guidance for the full-year 2013.
"We delivered another quarter of improving revenue growth in a dynamic healthcare environment. Once again, our growth was broad-based across businesses and geographies and reflects the positive impact of well-executed product launches and stabilizing end-markets," Chairman and CEO Omar Ishrak said in a statement.
The Minneapolis, Minnesota-based company reported net earnings of $864 million or $0.83 per share for the first quarter, higher than $821 million or $0.77 per share in the prior-year quarter. Excluding charges, the company's adjusted net earnings for the quarter was $883 million or $0.85 per share, compared to $845 million or $0.79 per share in the year-ago quarter.
On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.85 per share for the first quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 2 percent or 5 percent in constant currency to $4.01 billion from $3.95 billion in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $4.00 billion by a whisker.
International revenues for the quarter edged down 1 percent or grew 6 percent on a constant currency basis, to $1.78 billion, and accounted for 44 percent of Medtronic's worldwide revenues. Meanwhile, revenues from emerging markets increased 9 percent or 14 percent on a constant currency basis to $438 million from last year.
Revenues for Medtronic's cardiac and vascular group, which includes the Cardiac Rhythm Disease Management (CRDM), Coronary, Structural Heart, and Endovascular businesses grew 1 percent or 4 percent in constant currency to $2.12 billion from last year. Revenues for CRDM unit, by far its biggest business line, declined 5 percent or 2 percent in constant currency to $1.19 billion.
Revenues for the restorative therapies group, which includes the Spine, Neuromodulation, Diabetes, and Surgical Technologies businesses, grew 3 percent or 5 percent in constant currency, to $1.89 billion from last year, with spine revenues declining 5 percent or 3 percent in constant currency.
Looking ahead to fiscal 2013, the company continues to expect earnings in a range of $3.62 to $3.70 per share, with Street is currently looking for full-year earnings of $3.66 per share.
"Our Q1 results represent another positive step toward our goal of delivering consistent and dependable growth," Ishrak added.
MDT closed Monday's regular trading session at $41.45, up $0.72 on a volume of 8.24 million shares. In the past 52-week period, the stock has been trading in a range of $31.06 to $41.57.
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by RTT Staff Writer
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