Aug 25, 2016
Medtronic reports boost in 1Q profit, topping forecasts, on lower costs
DUBLIN — Medtronic's campaign to lower costs pumped up its profits during the first-quarter.
The medical device company's profit rose a 13 percent to $929 million, or 66 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.03 per share.
The results beat Wall Street expectations by 2 cents, according to a poll by Zacks Investment Research.
Revenue fell 1 percent to $7.17 billion, in line with analyst expectations.
Revenue from the cardiac and vascular unit, which includes implantable heart devices and valves, fell 2 percent to $2.52 billion. Revenue from minimally invasive therapies, which includes patient monitoring and surgical devices, fell 1 percent to $2.42 billion. The company's restorative therapies unit saw revenue fall 2 percent to $1.77 billion, while the diabetes care unit saw revenue rise 2 percent to $452 million.
Medtronic expects full-year earnings in the range of $4.60 to $4.70 per share.
Shares of Medtronic Inc. have climbed 13 percent since the beginning of the year, while the Standard & Poor's 500 index has increased slightly more than 6 percent. The stock has increased 22 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MDT at http://www.zacks.com/ap/MDT
Keywords: Medtronic, Earnings Report