Shares of medical devices maker Medtronic Inc. (NYSE: MDT) were higher in morning trading after the company reported third-quarter profit that beat analysts' estimates. For the quarter, Medtronic reported that its profit plunged 89% to $77 million, or 7 cents per share, down from $710 million, or 61 cents per share, in the same period a year ago.
Included in the company's earnings numbers, however, was a $275 million, or 24 cents per share charge related to lawsuit settlements from its recalled Marquis line of implantable defibrillators. Excluding that, Medtronic posted earnings of 63 cents a share. Analysts, on average, expected the company to show earnings of 61cents per share.
The medical devices maker also announced a 12% increase in revenues, to $3.41 billion, up from $3.05 billion a year earlier. Revenue during the period was helped by a 20% rise in international sales. Sales of implantable cardioverter defibrillators also gained 2% to $726 million. Analysts had forecast $3.34 billion in revenue, according to Thomson Financial.
Bill Hawkins, the company's president and CEO, showed optimism over the company's quarterly figures, stating that its performance reflects "double-digit growth in its neuromodulation, diabetes, spinal and ear-nose-throat businesses and the successful close of its acquisition of spinal implants maker Kyphon."
Looking ahead, Medtronic anticipates further gains from the launch of its Endeavor drug-coated stents in the United States. Hawkins underlined optimism over the company's "long-term growth prospects" based on Medtronic's "continued strong track record outside the U.S. "and its "broad and diversified portfolio."
For now, it looks like Hawkins may be correct in his assessment as traders have pushed shares of the stock up 1.30% in early morning trading.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.
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