Medtronic fiscal 2Q profit jumps 40 percent

Medtronic fiscal 2nd quarter profit jumps 40 pct, medical device maker reiterates forecast

Associated Press

MINNEAPOLIS (AP) -- Medtronic's second-quarter earnings jumped 40 percent compared with the same period last year when flat sales and legal costs weighed on the medical device maker.

The Minneapolis company stuck by its earnings and revenue guidance for 2014 even though it topped Wall Street expectations, and shares edged lower before the opening bell Tuesday.

Medtronic earned $902 million, or 89 cents per share, in the three months that ended Oct. 25. That compares to earnings of $646 million, or 63 cents per share, in last year's quarter.

If one-time costs are removed, the company earned 91 cents per share, a penny better than expected, according to a poll by FactSet.

Revenue climbed more than 2 percent to nearly $4.2 billion, just above analyst projections.

Worldwide sales for its cardiac and vascular group climbed 4 percent to about $2.2 billion with growth occurring across all businesses. The restorative therapies group, which includes its spine and surgical technologies business, saw revenue climb 2 percent to $1.6 billion.

Costs and expenses fell 5 percent to $3.08 billion compared to last year, when Medtronic booked $245 million in pretax legal fees.

The company said it still expects fiscal 2014 earnings to range between $3.80 and $3.85 per share on revenue growth of 3 percent to 4 percent. That would amount to revenue ranging from $17.09 billion to $17.25 billion.

Analysts expect, on average, $3.83 per share on $16.95 billion in revenue.

Shares of Medtronic Inc. fell 31 cents to $58 in premarket trading. The stock has traded between $40.28 and $58.85 over the past year.

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