Medtronic sees profit slip despite uptick in revenue
Medtronic ($MDT) pulled in $4.1 billion in revenue last quarter, but charges, litigation costs and expenses dragged profits down by about 25%.
The devicemaker posted $646 million in net profit in the fiscal second quarter, down from $864 million in the same period last year. Quarterly revenue ticked up 2%, sped along by growth in the company's cardiac and vascular and restorative therapies businesses.
Notably, Medtronic grossed $429 million from its coronary devices, a 14% jump, and $344 million from surgical technologies, good for a 15% boost over last year. However, that growth comes amid continued declines for some of the company's largest segments, including defibrillators, which fell 3%, and spinal devices, which notched a 7% revenue decline.
Medtronic CEO Omar Ishrak rarely misses a chance to affirm the company's commitment to growing its emerging markets presence, and the devicemaker did just that in Q2, picking up $464 million from the likes of China and India, a 14% increase over the same period last year.
"Our growth was broad-based across several businesses and geographies, driven by continued stabilization of our end markets and the ongoing successful execution of new product launches," Ishrak said in a statement.
Among those launches and globe-spanning growth spurts, Medtronic is inching toward European approval for its Engager heart valve, looking to unseat Edwards Lifesciences ($EW) in that market, and the company has made a series of big bets in China, closing an $816 million deal for a devicemaker there.
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