Financial

Medtronic beats forecasts on earnings, despite lower net income

By  – August 25, 2016

Medtronic PLC on Thursday reported lower adjusted net income in the most recent quarter and reiterated sales expectations for the year.

The company’s adjusted profit amounted to $1.03 in diluted earnings per share, two cents above Wall Street forecasts. Revenue was nearly in line with what had been expected.

 Medtronic shares fell about 1 percent in early morning trading.

Analysts with Leerink Partners predicted that Medtronic’s stock performance would be affected by the generally high expectations among investors in the med-tech sector overall this quarter.

Investors on the earnings call Thursday asked about the timing of Medtronic’s announcement Tuesday that it had completed its $1.1 billion acquisition of HeartWare, whose high-end heart pumps treat advanced heart failure by helping pump blood through the body. The HeartWare deal was originally projected to close by October.

“We really felt that we were in a position where we were getting critical mass around our expertise in heart failure,” chief executive Omar Ishrak said. “Where HeartWare was positioned as a company, we felt that we could add immediate value … We felt that this was absolutely the right time.”

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Josh Sandberg

Josh Sandberg is the President of Ortho Spine Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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