| Medtronic announced fiscal third-quarter earnings | | | | Margins |
| of 77 cents per share, which beat the Zacks | | | | Gross margin in the third quarter increased 60 |
| Consensus Estimate by a penny. Earnings in the | | | | basis points (bps) year over year to 76.3%. |
| year-ago period stood at 71 cents per share. | | | | Research and development expenses (excluding |
| Sales | | | | IPR&D charges) as a percentage of sales declined |
| Medtronic's total revenues for the quarter | | | | 70 bps year over year to 8.9%. Selling, general |
| increased 10% year over year to $3.851 billion. | | | | and administrative expenses as a percentage of |
| Medtronic witnessed sales growth across all its | | | | sales declined 150 bps year over year to 34.5%. |
| seven business segments. Cardiac Rhythm | | | | Balance Sheet & Cash Flow |
| Disease Management (CRDM) revenues increased | | | | Medtronic ended the third quarter with cash, cash |
| 6% year over year to $1.243 billion, driven by | | | | equivalents and short-term investments of $2.292 |
| strong demand for implantable cardioverter | | | | billion, an increase of approximately 37% in the |
| defibrillators (ICDs). Spinal revenues increased 1% | | | | first nine months of fiscal 2010. It had an |
| year over year to $842 million. Growth was | | | | outstanding long-term debt of $6.396 billion at the |
| fueled by higher demand for Biologics products. | | | | end of the reported quarter. Cash flow from |
| CardioVascular revenues climbed 28% year over | | | | operations and free cash flow were $1.488 billion |
| year to $722 million. An increase in revenues can | | | | and $1.365 billion, respectively, for the third |
| be attributed to strong sales growth across the | | | | quarter. |
| company?s Coronary, Structural Heart Disease | | | | Guidance |
| and Endovascular segments. | | | | Medtronic raised its earnings per share guidance |
| Neuromodulation revenues soared 11% year over | | | | for fiscal 2010 at the lower end of the range. For |
| year to $394 million, primarily due to higher sales | | | | the year, earnings per share are expected in the |
| of Activa PC, RC Deep Brain Stimulation systems | | | | range of $3.20 to $3.22, compared to the prior |
| and InterStim Therapy products. | | | | guidance of $3.17 to $3.22. |
| Diabetes, Surgical Technologies and Physio-Control | | | | Medtronic is one of the world?s leading medical |
| revenues swelled 12%, 15% and 11% year over | | | | technology companies, specializing in implantable |
| year to $311 million, $239 million and $100 million, | | | | and interventional therapy devices and products. |
| respectively. | | | | The company?s main competitors include St. Jude |
| On a geographic basis, U.S. sales contributed | | | | Medical (STJ) and Boston Scientific Corporation |
| roughly 58% to total revenues and advanced | | | | (BSX). |
| approximately 3.0% year over year. International | | | | Presently, we are Neutral on Medtronic. |
| sales climbed 22% year over year. | | | | |