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Medtronic Posts 3Q Profit as Pandemic Shapes Sales Mix

By Matt Grossman

 

Medtronic PLC Tuesday logged a profit and higher revenue in the latest earnings period but said that the Covid-19 pandemic was detracting from sales for some of its divisions as people delayed medical procedures during the crisis.

The Ireland-based medical-technology company logged earnings of 94 cents a share, down from $1.42 a share in the same three months a year earlier. Net income attributable to the company was $1.27 billion, a decline from $1.92 billion in the year-ago period.

On an adjusted basis, Medtronic's profit was $1.29 a share. Analysts surveyed by FactSet had forecast an adjusted profit of $1.15 a share.

Sales were $7.78 billion, in line with the FactSet analysts consensus. Sales in the prior year's third quarter were $7.72 billion.

Revenue from the company's largest segment, its cardiac and vascular group, declined 4% year over year to $2.71 billion. Minimally invasive therapies revenue rose 6.3% to $2.31 billion, while revenue from the restorative-therapies segment rose 0.7% to $2.13 billion.

The resurgence of Covid-19 cases in December and January weighed on procedure volumes for the cardiac, vascular and restorative-therapies divisions, Medtronic said. On the other hand, sales of diagnostics and therapies related to the pandemic boosted results for the company's minimally invasive therapies segment.

Medtronic declined to provide earnings guidance for the upcoming year or quarters, citing continuing uncertainty caused by the pandemic.

 

Write to Matt Grossman at matt.grossman@wsj.com

 

(END) Dow Jones Newswires

February 23, 2021 07:23 ET (12:23 GMT)

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