Medtronic profit falls less than forecast, while revenue rises above expectations

Medtronic PLC
MDT,
+2.14%
reported Tuesday fiscal third-quarter profit that fell less than expected, while sales rose more than forecast. The medical technology and services company’s stock slipped 2.0% in premarket trading, after rising 2.1% on Monday. Net income for the quarter to Jan. 29 fell to 1.27 billion, or 94 cents a share, from $1.92 billion, or $1.42 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share declined to $1.29 from $1.44, but topped the FactSet consensus of $1.15. Sales rose 0.8% to $7.78 billion, matching the FactSet consensus. Among the company’s business segments, cardiac and vascular sales fell shy of expectations, while minimally invasive therapies, restorative therapies and diabetes sales rose above expectations. The company did not provide financial guidance given uncertainties resulting from the COVID-19 pandemic. “Our Q3 results reflect that our business is well on the way to returning to growth, with sequential improvements in both revenue and earnings, despite the impact of the COVID resurgence on procedure volumes in late December and January,” said Chief Executive Geoff Martha. The stock has gained 4.3% over the past three months through Monday, while the S&P 500
SPX,
-0.77%
has advanced 8.4%.

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