Medtronic (NYSE:MDT) said this morning that its fiscal 3rd-quarter earnings climbed 30.7% on sales growth of nearly 4% without any contribution from Covidien, which it acquired for $50 billion just after the quarter ended.
Fridley, Minn.-based Medtronic said profits grew 28.2% to $977 million, or 98¢ per share, on sales growth of 3.7% to $4.32 billion for the 3 months ended Jan. 23. Adjusted to exclude 1-time items, earnings per share were $1.01; on Wall Street, analysts were looking for adjusted EPS of 97¢ on sales of $4.25 billion for the quarter.
"Q3 was a strong quarter, with revenue growth well above our outlook range for the fiscal year and exceeding our mid-single-digit baseline goal. All 3 legacy Medtronic groups contributed to our robust performance," chairman & CEO Omar Ishrak said in prepared remarks. "Our teams are executing on meaningful product launches around the world, and our customers are responding to our differentiated healthcare solutions that seek to demonstrate both clinical and economic value."
Medtronic said it expects to report combined Medtronic/Covidien sales growth of 4% to 6% on a constant-currency basis for its fiscal 4th quarter.
“The close of our acquisition of Covidien was a significant milestone for our industry and uniquely positions Medtronic to help lead the transformation of healthcare systems around the world," Ishrak said. "Our combination of extensive and innovative capabilities truly makes us a partner of choice to hospitals, payers and governments as we focus on a shared commitment to address universal healthcare needs – improving clinical outcomes, expanding access, and optimizing cost and efficiency."