Medtronic was hit hard by changes in medical care because of the coronavirus pandemic, reporting Tuesday that net income for its second quarter was down 64%.
Still, while most of the medical device company’s benchmarks were down year over year, the decreases were not nearly as much as expected.
Medtronic beat analysts’ estimates for earnings per share, revenue and organic growth, said the Ireland-based company with operational headquarters in Fridley.
“We’re seeing a faster-than-expected recovery and approaching year-over-year growth,” Medtronic CEO Geoff Martha said in a news release. “Our revenue growth is improving, our pipeline is advancing, and we’re gaining share in an increasing number of businesses.”
Medtronic booked $7.65 billion in revenue, down from $7.7 billion in the comparable quarter last year but significantly exceeding an expectation of $7.08 billion by Wall Street.
Net income was $489 million, or 36 cents a share, down from $1.4 billion, or $1.01 a share, in the same quarter last year. Adjusted earnings per share, though, was $1.02, ahead of analysts’ consensus estimate of 80 cents.
Martha said a new operating model focuses the company on market share.
In earlier earnings calls, the company said it expected to return to positive growth by the end of the 2021 fiscal year, which is in May.
Improved “non-U.S. developed” revenue accounted for part of the trend. It accounted for 32% of all revenue and grew 1% year over year. In comparison, U.S. revenue accounted for 53% of the total, but was down 2% year over year.
Despite the positive signs, the company declined to offer future financial guidance because the situation with the pandemic remains uncertain.