(RTTNews) - Medical equipment maker Medtronic, Inc. (MDT: News ) reported Tuesday a rise in second-quarter profit, as net sales increased 8% helped by growth in revenues in all of the company's segments. Earnings as well as revenues exceeded Street expectations. Looking ahead, the company raised its full year earnings per share guidance and also reaffirmed its 5% to 8% constant currency revenue growth outlook for the foreseeable future.

The Minneapolis, Minnesota-based company's net earnings for the quarter increased to $868 million or $0.78 per share from $547 million or $0.48 per share in the same period previous year.

Adjusting for a litigation gain and the impact of adopting a new accounting standard for non-cash interest expense on convertible debt effective the beginning of fiscal year 2010, non-GAAP net earnings were $850 million or $0.77 per share, compared to net earnings of $758 million or $0.67 per share in the same quarter last year. On average, 28 analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

In August, the company reported a 38% decline in its first-quarter profit for fiscal year 2010, hurt by charges related to restructuring and litigation. The company's first-quarter net earnings dropped to $445 million or $0.40 per share from $723 million or $0.64 per share reported in the same period last year. Net sales grew 6% to $3.93 billion from $3.71 billion in the prior-year quarter.

Net sales for the quarter increased 8% to $3.84 billion from $3.57 billion in the prior year. Twenty six analysts had a consensus revenue estimate of $3.75 billion for the quarter.
International revenues grew 12% to $1.54 billion from $1.37 billion in the same period last year, or increased 13% on a constant currency basis, accounting for 40% of Medtronic's worldwide revenue. Revenues from the U.S increased to $2.3 billion from $2.2 billion in the prior year quarter.

Segment-wise, Cardiac Rhythm Disease Management or CRDM world wide revenues grew 3% as reported and on a constant currency basis to $1.28 billion from $1.24 billion in the previous year. Outside the U.S, CRDM revenue grew 4% on a constant currency basis.

Spinal revenues increased 4% to $862 million from $829 million in the same quarter last year. Outside the U.S, Spinal revenues grew 10% on a constant currency basis driven by solid growth in China, Middle East/Africa, Canada and Latin America, the company said.

CardioVascular revenues were $696 million, up 17% as reported and 18% on a constant currency basis, from $596 million in the year earlier, after adjusting for an unfavorable $5 million foreign exchange impact. Neuromodulation revenues increased to $384 million from $343 million in the previous year. Diabetes revenue rose to $300 million from $272 million a year ago.

Revenues from Surgical Technologies segment grew 5% to $224 million from $213 million last year. Physio-Control revenues were $94 million, up from $75 million in the preceding year.

Total costs and expenses for the quarter decreased to $2.73 billion from $2.95 billion in the earlier year.

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