Medtronic PLC (NYSE:MDT), founded in 1949, initially started operating as a small electrical repair shop focusing on medical devices. A year later, it started selling medical equipment. Over the years, the company diversified and added a range of products to its portfolio such as robotic surgery systems, cardiac devices, insulin pumps, and patient monitoring systems, among others. Today, it is one of the world’s biggest medical device companies, with operations in 150 countries.
The company shares closed higher on Tuesday after reporting its third-quarter results above expectations. Medtronic posted earnings of 1.27 billion, or 94 cents per share for the three months ended January 29, well below $1.42 per share in the comparable period of 2020. However, the adjusted profit of $1.29 per share easily surpassed the consensus forecast of $1.15 per share.
Revenue came in at $7.78 billion, up 0.8 percent from the year-ago quarter, and in line with analysts’ average estimate.
Here’s the revenue performance of key segments:
-Revenue from the Cardiac and Vascular Group (CVG) decreased 4 percent to $2.707 billion.
-Revenue from the Minimally Invasive Therapies Group (MITG) rose 6.3 percent to $2.313 billion.
-Revenue from the Restorative Therapies Group (RTG) inched up 0.7 percent to $2.126 billion.
-Revenue from the Diabetes Group jumped 3.3 percent to $630 million.
Speaking on the quarterly performance, CEO Geoff Martha said, “Our Q3 results reflect that our business is well on the way to returning to growth, with sequential improvements in both revenue and earnings, despite the impact of the COVID resurgence on procedure volumes in late December and January. We’re outperforming our end markets, as new products are driving share gains in an increasing number of our businesses.”
Medtronic stock advanced 1.94 percent to $118 on Tuesday following the better-than-expected quarterly performance. Overall, the stock hasn’t gained much value over the past year. MDT share price has increased just 4 percent during the last 12 months.