Lower U.S. Procedure Volumes Lead Medtronic (MDT) to Weak Q1 Results
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Price: $92.30 --0%
EPS Growth %: +10.3%
Financial Fact:
Diluted - weighted average shares outstanding: 995.8M
Today's EPS Names:
BTTX, VAXX, ELYS, More
EPS Growth %: +10.3%
Financial Fact:
Diluted - weighted average shares outstanding: 995.8M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Medtronic (NYSE: MDT) shares are modestly higher Tuesday morning following first-quarter earnings results which showed strong revenue growth in emerging markets.
The medical-therapy device maker posted a 7 percent rise in global revenue to $4.049 billion. The number included a $189 million benefit from foreign exchange. Adjusting for items, revenue sunk to $3.863 billion, just a 2 percent increase from the same period last year.
Emerging market revs jumped 25 percent to $408 million.
Net income fell 1.1 percent to $821 million, or 77 cents per share. Adjusting for acquisition-related items and convertible debt expenses, earnings swelled to 79 cents per share.
The Street was expecting revenue of $3.98 billion and earnings of 79 cents per share.
Cardiac Rhythm Disease Management revs declined 3 percent on a constant currency basis to $1.253 billion. Medtronic noted U.S. procedure volume decreased in the quarter, partially offset by continued growth of AF Solutions and the continued roll-out of the Protecta ICD and Revo MRI pacemaker in the U.S.
"Our first quarter results showed growth across many of our businesses. The major exceptions were ICDs and spinal products, where we continued to face challenges," commented CEO Omar Ishrak. "In order to drive growth, we will be focused on three key imperatives – improving execution, optimizing innovation, and accelerating globalization...We will significantly change the way we prioritize products in our pipeline, placing the highest emphasis on our ability to demonstrate not just clinical value, but economic value at both the customer and societal level."
Looking ahead, Medtronic reaffirmed its outlook for fiscal 2012.
Medtronic shares are up 1.2 percent to $31.55.
The medical-therapy device maker posted a 7 percent rise in global revenue to $4.049 billion. The number included a $189 million benefit from foreign exchange. Adjusting for items, revenue sunk to $3.863 billion, just a 2 percent increase from the same period last year.
Emerging market revs jumped 25 percent to $408 million.
Net income fell 1.1 percent to $821 million, or 77 cents per share. Adjusting for acquisition-related items and convertible debt expenses, earnings swelled to 79 cents per share.
The Street was expecting revenue of $3.98 billion and earnings of 79 cents per share.
Cardiac Rhythm Disease Management revs declined 3 percent on a constant currency basis to $1.253 billion. Medtronic noted U.S. procedure volume decreased in the quarter, partially offset by continued growth of AF Solutions and the continued roll-out of the Protecta ICD and Revo MRI pacemaker in the U.S.
"Our first quarter results showed growth across many of our businesses. The major exceptions were ICDs and spinal products, where we continued to face challenges," commented CEO Omar Ishrak. "In order to drive growth, we will be focused on three key imperatives – improving execution, optimizing innovation, and accelerating globalization...We will significantly change the way we prioritize products in our pipeline, placing the highest emphasis on our ability to demonstrate not just clinical value, but economic value at both the customer and societal level."
Looking ahead, Medtronic reaffirmed its outlook for fiscal 2012.
Medtronic shares are up 1.2 percent to $31.55.
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