Medtronic posts uptick for Q3, bolstered by strong CV sales
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The Minneapolis-based company reported third quarter revenue of $3.85 billion, a 10 percent increase over third quarter revenue reported a year ago. Revenue outside the U.S. grew to $1.62 billion, an increase of 22 percent as reported over the same period last year. Also, its net earnings in the 2010 third quarter were $831 million, an increase of 19 percent over the previous third quarter's $698 million, according to Medtronic.
For its cardiac rhythm disease management (CRDM) unit, the company posted revenue of $1.24 billion, which grew 6 percent over the previous quarter's $1.17 billion. Global implantable cardioverter-defibrillator (ICD) revenue was $756 million, compared with $694 million in the previous-year third quarter. Its global sales for pacing systems grew by $2 million to $459 million in the third quarter of 2010. Outside the U.S., Medtronic reported its CRDM revenue grew 2 percent on a constant currency basis, driven by its atrial fibrillation business as well as growth in ICD sales.
The company said its overall revenue in its CardioVascular unit grew 28 percent to $722 million. Within that unit, its coronary, structural heart and endovascular revenues grew 23 percent, 20 percent and 15 percent, respectively. Medtronic said the adoption of the Endeavor stent in Japan and international growth across its entire CardioVascular segment contributed to the strong quarterly performance.
Diabetes revenue of $311 million grew 12 percent. The company attributed growth in its diabetes unit to global sales of continuous glucose monitoring systems, as well as the launch of the Paradigm Veo insulin pump in Asia and Europe.
Physio-Control’s 2010 third quarter revenue of $100 million represented a growth of 11 percent. International sales and sales of the Lifepak 15 monitor/defibrillator, launched earlier in the fiscal year, contributed to revenue growth in the quarter.
Finally, the company raised the lower end of fiscal year 2010 guidance to a range of $3.20 to $3.22, which compares to the previous guidance of $3.17 to $3.22—an anticipated growth of 12 to 13 percent.