Medtronic Q4 Profit Tops Expectations

reported upbeat earnings for the fiscal fourth quarter on Tuesday. The Dublin, Ireland-based company reported a quarterly net loss of $1 million, or $0.00 per share, versus earnings of $448 million, or $0.44 per share, in the year-ago period. Excluding non-recurring items, the company earned $1.16 per share. Its revenue rose to $7.3 billion from $7.26 billion on a comparable basis. However, analysts were expecting a profit of $1.11 per share on revenue of $7.19 billion. The average estimate among 16 Estimize users was for earnings of $1.11 per share and revenue of $7.12 billion. Worldwide revenue for the Cardiac and Vascular Group gained 10 percent year-over-year to $2.596 billion in the quarter, while sales for the Minimally Invasive Therapies Group rose 6 percent to $2.387 billion. Revenue for the Restorative Therapies Group rose to $1.854 billion, while revenue for the Diabetes Group climbed to $467 million. U.S. revenue surged to $4.057 billion in the quarter, while emerging market revenue climbed to $923 million. "I am encouraged by our strong fourth quarter performance, the first quarter that reflects the combined results of Medtronic and Covidien. In addition to making solid progress on our integration of Covidien, these results reflect disciplined execution across our three core strategies of therapy innovation, globalization, and economic value," said Omar Ishrak, Medtronic chairman and chief executive officer. "Our results reflect the dedication and passion of over 85,000 employees collaborating with our partners in healthcare to deliver therapies and services to millions of patients around the globe, to fulfill our Mission of alleviating pain, restoring health, and extending life." Medtronic projects FY16 cash earnings of $4.30 to $4.40 per share, versus analysts' estimates of $4.39 per share. It also expects FY16 underlying operational revenue growth of 4 percent to 6 percent. Medtronic shares rose 0.50 percent to close at $76.70 yesterday.