By Joe Carlson – 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.
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.”