Medtronic meets profit estimates on sales of new products

MINNEAPOLIS – Medtronic PLC, the world’s biggest maker of heart-rhythm devices, met third-quarter profit estimates as its newest products continue to take market share from rivals.
The company, which has an office in Mansfield, posted profit of $1.06 a share excluding one-time items for the period ended Jan. 29, in line with the $1.06 average prediction from 23 analysts compiled by Bloomberg.
Medtronic is still digesting the January 2015 acquisition of Covidien PLC, the biggest purchase in its history, which enabled it to move domicile to Ireland, where corporate taxes rate are lower. The deal, which almost doubled Medtronic’s sales, is expected to generate $850 million in cost savings by the end of fiscal 2018.

Third-quarter revenue was $6.9 billion, compared with $4.3 billion a year ago, a 61 percent increase. The year-ago number represents Medtronic revenue only. Combined, Medtronic and Covidien revenue from the third quarter of 2015 totaled $6.896 billion, which lowers the third-quarter revenue increase to 6 percent on a constant-currency basis. Based on those numbers, Covidien’s revenue alone was $2.5 billion.
On a GAAP basis, profit was $1.095 billion, or 77 cents per diluted share, in the third quarter, compared with $977 million, or 98 cents per diluted share, in third quarter 2015, an increase of 12 percent and decrease of 21 percent, respectively.
The one-time charges and gains in the period included restructuring charges and write-downs of intangible assets.
Web editor Lori Stabile contributed to this report

No posts to display