New CEO Omar Ishrak’s plans to ramp up efficiency at Medtronic Inc. (NYSE:MDT) met with favor on Wall Street, where investors sent the medical device makers stock up 6.2 percent yesterday and added another 56 cents this morning.
Ishrak revealed his plans to wring more growth from the world’s largest pure-play device maker in an internal email to employees last week. First reported publicly here at MassDevice, the email details a restructuring of the company’s business lines around eight global regions.
During a conference call with investors yesterday to discuss Medtronic’s fiscal 2012 first quarter, the newly minted chief executive said his top priority is to "align management" around a singular focus.
“I’m focused on delivering crisp and efficient operations,” he said. “My top priority is to align management team around single goal of growth.”
New Medtronic CEO Omar Ishrak
The Fridley, Minn.-based medical device giant reported profits of $821 million, or 77 cents per share, on sales of $4.05 billion for the three months ended July 29. That compares with income of $830 million, or 76 cents per share, on sales of $3.77 billion during the same period last year. Analysts had expected earnings of 80 cents per share and weaker earnings for Medtronic’s $800 million spine division on the heels of a high-profile controversy over the safety of its Infuse bone growth product.
Read MassDevice.com’s exclusive interviews with former Medtronic CEO Bill Hawkins
The Street dug Ishrak’s rap, sending MDT shares to a $33.10 high yesterday, wher the stock closed up 6.2 percent. As of roughly 11 a.m. today, shares were trading at about $33.75, up nearly 2 percent.
