Medtronic Profit Up 59 Percent

NEW YORK (AP) -- Medtronic Inc. says its fiscal second-quarter profit rose 59 percent on higher sales of implantable heart devices and stents, while costs fell.

The sales gains during the quarter prompted the medical device maker to boost its full-year guidance, sending its shares up in premarket trading.

The Minneapolis company earned $868 million, or 78 cents per share, in the quarter ended Oct. 30, up from $547 million, or 48 cents per share, a year ago. Excluding a litigation gain and other items, adjusted income totaled $850 million, or 77 cents per share.

Revenue jumped 8 percent to $3.84 billion from $3.57 billion.

Analysts expected profit of 74 cents per share on revenue of $3.75 billion, according to a survey by Thomson Reuters.

Revenue from heart rhythm devices rose 3 percent to $1.28 billion, including $754 million in sales of implantable cardioverter defibrillators, the company's best-selling products. Defibrillators use electrical shocks to correct abnormal heart beats that could be deadly.

Sales of pacing products were $498 million.

Strong stent sales helped cardiovascular revenue grow 17 percent to $$696 million. Meanwhile, spinal revenue rose 4 percent to $862 million, and sales in the neuromodulation unit rose 12 percent to $384 million. Neuromodulation implants are designed to treat pain and other conditions through by stimulating the nervous system.

Diabetes revenue rose 10 percent to $300 million, surgical technologies revenue grew 5 percent to $224 million, and physio-control revenue grew 25 percent to $94 million.

Looking ahead, Medtronic expects full-year profit between $3.17 and $3.22 per share. Analysts expect $3.15 in fiscal 2010 profit.

In premarket trading, Medtronic shares changed hands at $42.44, up $2.13, or 5.3 percent, from Monday's close.