Medtronic fiscal 3Q net income rises 6 percent

MINNEAPOLIS (AP) -- Medical device maker Medtronic Inc. said Tuesday its net income rose 6 percent in its fiscal third quarter despite mixed sales of its heart implants.

Medtronic said revenue from its heart and vascular device business grew 5 percent during the quarter, but sales of implantable defibrillators fell and sales of pacemakers were unchanged from last year. However it reported greater sales of devices that treat atrial fibrillation, a type of irregular heartbeat. It also said revenue from surgical technologies, nerve stimulation therapies, and diabetes treatments improved.

The company backed its full-year net income guidance, saying it still expects to earn between $3.66 and $3.70 per share.

Analysts are forecasting net income of $3.67 per share, according to FactSet.

Medtronic said its net income for the three months ended Jan. 25 totaled $988 million, or 97 cents per share. A year ago it reported net income of $935 million, or 88 cents per share. Excluding one-time items Medtronic said its profit totaled 93 cents per share in the latest quarter. Revenue grew 3 percent, to $4.03 billion from $3.92 billion.

Analysts expected 91 cents per share in adjusted net income and $4.03 billion in revenue on average, according to FactSet.

The company said sales of heart and vascular devices rose 5 percent to $2.1 billion. Heart rhythm device sales fell 1 percent to $1.17 billion as sales of implantable defibrillators fell. Medtronic said sales of coronary devices, atrial fibrillation treatments, drug coated stents, and other products improved.

Revenue from its restorative therapies business rose 3 percent to $1.93 billion despite a decline in sales of spinal devices. The company said revenue from surgical technologies, nerve stimulation therapies, and diabetes treatments improved.

Shares of Medtronic fell $1.39, or 3 percent, to $45.73 in afternoon trading.