Medtronic’s Q4 Earnings Skyrocket

Medical device maker Medtronic Inc. reported quarterly earnings that more than tripled from the same quarter a year-ago.
    Medtronic said it earned $746.6 million, or 62 cents per share, during its fourth quarter ended April 28. That was up from $194.4 million, or 16 cents a share, during the same period last year, when it recorded $451 million in litigation and tax charges.
    Not counting those charges from last year, Medtronic earnings grew 16%. Revenue of almost $3.08 billion was up 11% from $2.78 billion last year.
    Analysts polled by Thomson Financial had expected Medtronic to earn 62 cents per share on revenue of $3.07 billion.
    “Medtronic’s strong annual and fourth-quarter performance reflects the balance of our portfolio and underscores the importance of maintaining a diversified business,” said chairman and CO Art Collins. He added that six of Medtronic’s seven businesses reported double-digit growth.
    Medtronic’s largest business, cardiac rhythm disease management, saw revenue grow 10% to almost $1.4 billion, although Medtronic didn’t say what that division’s operating profits were.
    Medtronic raised its guidance for fiscal 2007 and issued a 2008 outlook. For fiscal 2007 it said it would earn $2.52 to $2.60 per share, up from its earlier estimate of $2.50 to $2.55, on revenue of $12.5 billion to $13 billion. Analysts had been expecting $2.49 per share. Those estimates do not include the 12 cents per share charge Medtronic expects to take for expensing stock options.
    For fiscal 2008 Medtronic said it expects to earn $2.78 to $2.88 on revenue of $14 billion to $15 billion.