This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Heart Devices Pace Medtronic

Updated from 5:41 p.m. EST

Medical-device maker Medtronic (MDT - Get Report) said its fiscal second-quarter revenue reached nearly $2.8 billion as the company benefited from double-digit sales growth in its largest segments, including a big gain for its heart instruments.

The Minneapolis-based company said its top line rose 15% from $2.4 billion in the prior year's second quarter. Medtronic earned $816.5 million, or 67 cents a share, up from $535.7 million and 44 cents a share last year.

Before items, second-quarter earnings would have been $657.1 million, or 54 cents a share, matching Wall Street's consensus per-share estimate.

Medtronic's cardiac rhythm management business posted sales of nearly $1.3 billion, up 17%. Implantable cardioverter defibrillator revenue rose 34% to $733 million.

According to the company's estimates, more than half of the ICDs being implanted are Medtronic's.

In a conference call after the market closed Wednesday, Medtronic said it continues to think many patients who could be helped by ICDs aren't receiving the devices, meaning the market has substantial room for growth.

The company's business focused on spinal, ear nose and throat, and navigation devices saw its revenue reach $603 million, up 19% from a year ago. Second-quarter sales at the neurological and diabetes segment climbed 13% to $487 million, and vascular revenue increased 12% to $225 million.

However, revenue from Medtronic's emergency response systems business fell 21% because of vendor supply issues. That segment brought in $81 million in the quarter.

Medtronic's Chief Financial Officer Gary Ellis reiterated the company's earnings guidance of $2.18 to $2.23 for its 2006 fiscal year, which it first issued at its October investor meeting. The company had previously forecast a profit of $2.10 to $2.15 for the year.

Also during the conference call, Medtronic provided an update on trials of the obesity device it gained through buying Transneuronix, saying it hopes to have data by the end of 2005 and to file an application for its approval early next year.

Medtronic shares were down 99 cents, or 1.7%, to $56 in after-hours trading.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MDT $76.49 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs