reported better-than-expected profits and revenue for the latest three months thanks to stronger sales across the board of its medical devices, lifting its stock Tuesday.
Earnings in the fiscal second quarter were down 12% from a year ago, coming in at $681 million, or 59 cents a share. However, analysts were expecting the company to earn 56 cents a share.
Medtronic's earnings per share actually advanced 13% after adjusting last year's second quarter for stock-option expensing, gains and charges. Revenue reached $3.08 billion, up 11% from last year. Analysts were expecting revenue of $2.97 billion.
Shares of Medtronic were gaining 6.8% to $52.28 in premarket trading.
"These results reflect the strength of our broad and diversified business portfolio that serves many of the fastest growing segments in medical technology," said Art Collins, Medtronic's chairman and chief executive.
Medtronic's cardiac-rhythm group brought in $1.36 billion in revenue, up 6%, with implantable cardioverter defibrillator sales of $764 million, 4% higher than a year ago and 14% ahead of the prior quarter. Pacemaker revenue, at $473 million, rose 3%.
The company said it now holds an estimated 56% of the worldwide ICD market and more than 50% of the global pacemaker market. Sales of its emergency response systems were $111 million, up 37%.
Revenue from spinal and navigation devices reached $625 million, a gain of 16%. Vascular revenue reached $287 million, up 28%. The endovascular and peripheral vascular groups reported revenue growth of 23%, while neurological device revenue was $291 million, a 15% rise.
The company also stuck with its 2007 and 2008 profit forecasts.