Heart Devices Pace Medtronic
Updated from 5:41 p.m. EST
Medical-device maker Medtronic (MDT) 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
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV