NEW YORK, N.Y. – Medtronic PLC’s fiscal second-quarter profit more than doubled on higher sales of its heart and surgical devices. But revenue fell short of Wall Street expectations, helping to drag shares lower.
The Dublin-based company’s stock fell more than 10 per cent in midday trading Tuesday.
The medical device company earned $1.12 billion, or 80 cents per share. Earnings, adjusted for amortization costs and restructuring costs, came to $1.12 per share. The results topped Wall Street expectations. The average estimate of 18 analysts surveyed by Zacks Investment Research was for earnings of $1.11 per share.
Revenue rose 4 per cent to $7.35 billion in the period, which missed Street forecasts. Seventeen analysts surveyed by Zacks expected $7.46 billion.
The revenue boost came from a broad range of divisions. Revenue from the cardiac and vascular unit, which includes implantable heart devices and valves, rose 4 per cent to $2.58 billion. Revenue from minimally invasive therapies, which includes patient monitoring and surgical devices, rose 5 per cent to $2.47 billion. The company’s restorative therapies unit saw revenue rise 4 per cent to $1.83 billion, while the diabetes care unit saw revenue rise 3 per cent to $462 million.
Medtronic expects full-year earnings in the range of $4.55 to $4.60 per share.
Medtronic shares fell $8.26, or 10.2 per cent, to $72.32 in midday trading Tuesday. Its shares have fallen almost 5 per cent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MDT at https://www.zacks.com/ap/MDT
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