Medtronic Jumps on FDA Approval
Medtronic
(MDT) - Get Report
shares jumped Wednesday after the medical device maker said the Food and Drug Administration had approved its diabetes monitoring system.
Shares were up $1.23, or 2.6%, to $47.73.
The company, which reports fiscal third-quarter earnings after the markets close today, considers the blood sugar monitoring system a "key component in its diabetes technology pipeline." Medtronic's Guardian system alerts patients to "potentially dangerous fluctuations in their blood sugar, or glucose, levels." The company says some 18 million Americans have diabetes, which is the sixth-leading cause of death in the U.S.
Medtronic shares fell sharply from a 52-week high last Thursday after the Minnesota-based company lowered revenue guidance for the quarter ended Jan. 23 to a shade under $2.2 billion. In December, the company said third-quarter revenue could be at the high end or even exceed a range of $2.15 billion and $2.23 billion.
As a result, CIBC lowered its rating on Medtronic to sector underperform from sector perform.
At the same time, the company did not change its quarterly profit forecast of 40 cents to 41 cents a share. The consensus estimate is 40 cents a share, according to Thomson First Call.
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