Medtronic Earnings Rise

Numbers hit targets.
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Updated from 4:45 p.m. EDT

Medical device maker

Medtronic

(MDT) - Get Report

posted a solid performance for the fourth quarter.

The Minneapolis-based company made $747 million, or 62 cents a share, for the quarter ended April 28, up from the year-ago $194 million, or 16 cents a share. Revenue rose to $3.08 billion from $2.78 billion a year earlier.

The results were in line with the Thomson Financial analyst consensus estimate.

The company saw strong sales of implantable cardiac defibrillators in its most recent quarter, despite a slowdown in sales growth among its competitors, the Guidant unit of

Boston Scientific

(BSX) - Get Report

and

St. Jude

(STJ)

.

Implantable defibrillators, the company's largest product line, recorded revenue of $768 million, up 12%. The device maker says it gained another 3% of the ICD market from the year-ago period, ending the quarter with a 53% market share.

The overall ICD market grew $74 million sequentially from the third quarter, according to the company, with Medtronic capturing more than 60% of that growth. While the market's growth was admittedly softer than expected, Medtronic executives say the slowdown is short term.

Overall, Medtronic's cardiac rhythm devices, which include pacemakers and defibrillators, brought in $1.4 billion in the fourth quarter, up 10% from the year-earlier period. Pacing-device revenue was $467 million in the quarter, up 7%, and sales of cardiac devices used by emergency response personnel were up 14% to $144 million.

In addition, Medtronic had $282 million in revenue from its neurological device segment, up 10%; revenue of $273 million from its vascular business, up 18%; and sales of diabetes products were $188 million, up 5%. Medtronic's heart surgery devices, however, brought in $183 million, a 1% decline.

"Medtronic's strong annual and fourth quarter performance reflects the balance of our portfolio and underscores the importance of maintaining a diversified business," said CEO Art Collins. "During this past fiscal year, revenue in six of our seven businesses reported double-digit growth. These six businesses also comprise 94 percent of total Medtronic revenue in the fiscal year. We are encouraged by the strength of our new product pipeline and continue to make major investments to support growth in the coming fiscal year and beyond."

For its 2007 fiscal year, Medtronic reiterated its revenue guidance of between $12.5 billion and $13 billion, and increased its earnings guidance to between $2.52 and $2.60 a share, excluding the impact of stock option expensing. The company previously expected to earn between $2.50 and $2.55. Including stock-options expensing, Medtronic expects to earn between $2.40 and $2.48 a share during the fiscal year.

Shares were up $1.05, or 2.19%, to $49 after hours Tuesday, after closing the regular session at $47.95.