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Medtronic Shares Slip as Sales Decline

Medtronic reported a decrease in first-quarter revenue amid a softer global health care market hurt by decreased utilization and increased pricing pressure.
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MINNEAPOLIS (TheStreet) --Medtronic (MDT) - Get Report reported a decrease in fiscal first-quarter revenue amid a softer global health care market hurt by decreased utilization and increased pricing pressure.

Medtronic, in a statement Tuesday, said first-quarter revenue was $3.77 billion, compared with $3.93 billion reported in the year-ago period, a decrease of 4% as reported or an increase of 2% after adjusting for special items.

Medtronic reported first-quarter net earnings of $830 million, or 76 cents a share, an increase of 87% and 90%, respectively, over the same period last year. Adjusted non-GAAP earnings were 80 cents a share.

Analysts on average were expecting earnings 81 cents a share on revenue of $3.95 billion.

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For fiscal 2011, the company expects earnings in the range of $3.40 to $3.48 a share, which includes about 5 cents of dilution from the acquisition of Invatec and ATS Medical. On average, analysts are expecting earnings of $3.48 a share.

Shares of Medtronic fell 3.4% to $33.80 in premarket trading Tuesday.

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-- Reported by Andrea Tse in New York

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