Minnesota medical technology company Medtronic Inc. announced Tuesday that second-quarter fiscal net earnings rose 40 percent as the implantable defibrillator market improves.
Medtronic Inc. said in a news release
that net earnings were $902 million, which marked an increase from the same time last year.
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The Wall Street Journal reported there were some concerns about Medtronic
's fiscal health because of sales of defibrillators, which shock hearts to stop potentially deadly rhythm distortions. The equipment was under scrutiny by the government because of implant practices in the U.S., austerity measures in Europe, and general economic uncertainty.
"Our second quarter revenue growth was in-line with our outlook for the year, and we are performing at or better than the market in almost every one of our business lines," Omar Ishrak, Medtronic chairman and CEO said in the news release. "This quarter also represented another quarter where our overall organization delivered consistent, dependable growth, with strong performances in some areas offsetting challenges in other parts of our business."
Earnings for Medtronic, which develops pacemakers, spinal products, insulin pumps, and other medical devices, equated to 89 cents a share in the second quarter that ended Oct. 25, according to Reuters.
Last year this time, the company's stock was 63 cents a share.
Excluding special items, Medtronic's earners had 91 cents a share. Analysts polled by Thomson Reuters recently expected earnings to be 90 cents per share and revenue to hit $4.18 billion.
Medtronic reported $4.194 billion in worldwide second quarter revenue compared to the $4.095 billion reported last fiscal year, an increase of 3.3 percent on a constant currency basis after adjusting for a $38 million negative foreign currency impact or 2.4 percent.
Zacks Equity Research reported that before the announcement, Medtronic missed estimates in its last reporting quarter for the 2014 fiscal year. Zacks said "margin pressure remained a major downside."
"We are also concerned about the recent U.S. Food and Drug Administration's warning on certain Medtronic devices," Zacks Equity Research wrote Monday. "As per the announcement, the company's recently initiated voluntary field action related to certain guidewires were classified as a Class I recall by FDA. Class I recall implies a situation where there is a reasonable probability of serious health hazards or death occurring from the use of a violative product."
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