Medtronic Q3 Earnings Rise 23%

Minneapolis, MN-based Medtronic Inc. reported a 23% jump in quarterly income as recall woes at rival medical device maker Guidant Corp. helped spur some business, according to the Associated Press. Still, revenue for the quarter fell short of Wall Street’s forecast, and Medtronic shares fell nearly 1% in late-session trading. Medtronic said it earned $669.6 million, or 55 cents per share, during its third quarter, up from $544.1 million, or 45 cents per share, in the same period last year. The results matched the estimate of analysts polled by Thomson Financial. Revenue rose 9% to $2.77 billion. Wall Street was expecting nearly $2.9 billion. Last month Guidant reported that quarterly profits fell 25% because of highly-publicized recalls of implantable pacemakers and defibrillators. Guidant has recalled or issued safety advisories for about 88,000 defibrillators and more than 200,000 pacemakers since June. At least seven deaths have been linked to the faulty devices. Medtronic Chairman and CEO Art Collins said the recalls and growth in the market for defibrillators have helped Medtronic increase its market share. “There’s no question that there was a disruption in the market as a result of some of the issues Guidant had, but as we move through this year we continue to run with what we believe is the strongest product line in the market,” he said.