Unburdened by the hefty charges it saw last year during the third quarter, medical technology company Medtronic (MDT) saw its profit soar this year, but its revenue missed Wall Street’s estimates.
The Minneapolis-based device maker posted a net income of $723 million, or 65 cents a share, for the quarter ended Jan. 23, compared with a net income of $77 million, or 7 cents a share, for the same period a year ago. Excluding charges, the company earned 71 cents a share. Sales for the quarter jumped 3% from $3.41 to $3.49 billion.
Analysts polled by Thomson Reuters were expecting a profit of 70 cents a share on revenue of $3.51 billion.
While the company was faced with “global macroeconomic uncertainties,” and unfavorable foreign exchange rates during the quarter, Medtronic Chairman and CEO Bill Hawkins said the company continues to deliver growth.
“Excluding the impact of foreign currency, four of our seven business units reported double digit revenue growth in the quarter and we continue to focus on delivering meaningful operating leverage,” he said.
Among the businesses that saw big gains were the cardiovascular unit, which saw its sales jump 10% to $565 million, and its neuromodulation unit, which saw sales jump 11% to $354 million. The gains were offset by a decline of 4%, or $1.17 billion, in the company’s cardiac rhythm division.
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