Medtronic reports increased revenues

Medtronic, Inc.'s Cardiac and Vascular Group, which includes operations in Santa Rosa, today reported sales of $2.160 billion, an increase of 2 percent, for the first quarter of fiscal year 2014, ended July 26.

Across the company, Minneapolis-based Medtronic (NYSE:MDT) reported that its first quarter revenues grew by 3 percent across the company, reaching $4.083 billion, for the first quarter, from $4.1 billion.

The vascular group had "solid growth" after adjusting for foreign currency changes in structural heart, pacing, endovascular, atrial fribulation solution and coronary products, although it was partially offset by a decline in implantable defribillators, which decreased by 2 percent to $655 million in first quarter revenues, according to Medtronic.

Group international sales of $1.234 billion increased 9 percent after adjusting for changes in currency. Total group revenues reached $1.193 billion, which was flat from the year prior, according to the company.

Pacing revenue was $474 million, an increase of 6 percent after adjusting for foreign currency. Coronary revenue of $435 million were flat as reported, while sales of drug-eluting stents increased 10 percent on a constant currency basis, driven by continued worldwide share gains of the ResoluteIntegrity drug-eluting stent, Medtronic said.  Structural heart revenue of $313 million grew 12 percent, while endovascular revenue of $219 million grew by 5 percent as reported.

"Our Q1 results reflect that we are broadly outperforming our sector," Omar Ishrak, Medtronic chairman and chief executive officer, said in a statement "At the same time, we continue to strengthen and geographically diversify our business and remain confident in both our outlook for the remainder of the year and our long-term competitive position in the changing healthcare environment."

Across the company, first quarter net earnings were $953 million, 93 cents per diluted share, an increase of 10 percent and 12 percent from $864 million, or 83 cents per share, respectively, over the same period in the prior year.

While Medtronic's earnings kept pace, total revenues fell shy of analysts' estimates of $4.11 billion. Shares of Medtronic closed at $52.83, down 2.35 percent, and crept back up to $52.85 in after-hours trading.

In fiscal year 2014, Medtronic said it expects full-year revenue growth in the range of 3 to 4 percent on a constant currency basis, and diluted earnings per share in the range of $3.80 to $3.85.

"We continue to make progress on our transformational opportunities of globalization and economic value, which we believe will establish durability in our long-term performance and create potential upside to our baseline expectations," Mr. Ishrak said. "Ultimately, we intend to transform Medtronic from being primarily a device provider today into the premier global medical technology solutions partner of tomorrow."


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