Medtronic Q2 Earnings Beat Estimates

reported upbeat earnings for its fiscal second quarter on Thursday. The Dublin, Ireland-based company reported a quarterly profit of $520 million, or $0.36 per share, compared to $828 million, or $0.83 per share, in the year-ago period. Excluding special items, the company's adjusted earnings came in at $1.03 per share. Its revenue climbed 62 percent to $7.06 billion. However, analysts were estimating earnings of $1 per share on revenue of $7.06 billion. The average estimate among 26 Estimize users was for earnings of $1.01 per share and revenue of $7.13 billion. Revenue for the minimally invasive therapies group rose 3 percent to $2.36 billion. Its revenue from cardio-and-vascular group segment climbed to $2.48 billion, while revenue from the restorative-therapies group surged to $1.77 billion. The company's sales from the diabetes group rose to $450 million. U.S. revenue rose to $4.098 billion for the quarter. "Q2 was another strong quarter. Our above-market revenue growth remains robust and consistent, and, we believe, sustainable across our groups and regions," said Omar Ishrak, Medtronic chairman and chief executive officer. "We are steadily executing our plan and meeting our expectations, while at the same time building a foundation for long-term, dependable revenue growth and EPS leverage." For fiscal year 2016, the company now projects adjusted earnings of $4.33 to $4.40 per share, versus prior outlook of $4.30 to $4.40 per share. Medtronic shares fell 0.46 percent to close at $76.16 yesterday.