Medtronic Tops Q1 Estimates

reported upbeat results for its fiscal first quarter. The Dublin, Ireland-based company posted quarterly net income of $820 million, or $0.57 per share. Its adjusted earnings climbed to $1.46 billion, or $1.02 per share in the recent quarter, compared to $992 million, or $0.99 per share, in the year-ago quarter. Its revenue climbed to $7.274 billion. However, analysts were expecting earnings of $1.01 per share on revenue of $7.06 billion. The average estimate among 23 Estimize users was for earnings of $1.04 per share and revenue of $7.08 billion. U.S. revenue rose to $4.142 billion in the quarter, while non-U.S. developed market revenue climbed to $2.197 billion. Emerging market revenue surged to $935 million. Worldwide revenue for the Cardiac and Vascular Group climbed to $2.567 billion in the quarter, while sales for the Minimally Invasive Therapies Group gained to $2.456 billion. Revenue for the Restorative Therapies Group jumped to $1.806 billion, while the Diabetes Group revenue gained to $445 million. "Our first quarter results represent a strong start to fiscal year 2016, with all four of our groups contributing to revenue growth that was at the upper end of our goal when adjusted for the extra week. We are driving solid growth in the United States and seeing broad acceptance of our innovative therapies around the world," said Omar Ishrak, Medtronic chairman and chief executive officer. "We continue to strengthen and geographically diversify our businesses and remain confident in both our outlook for the remainder of the year and our long-term competitive position in the changing healthcare environment." Medtronic reiterated full-year adjusted earnings forecast of $4.30 to $4.40 per share, and revenue growth of 4 percent to 6 percent on a comparable, constant currency basis. Medtronic shares gained 2.91 percent to close at $71.55 yesterday.