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Demand for Medtronic's pacemakers and other devices for heart
failure has not been significantly impacted by the pandemic as
procedures that involve these devices cannot be postponed in
most cases.
However, overwhelmed by soaring infections and a shortage of
healthcare workers, hospitals across the United States had to
put off non-critical surgical procedures to free up staff and
beds, denting demand for devices used in non-urgent procedures.
"The impact of the COVID-19 resurgence on healthcare procedure
volumes, particularly in the United States, peaked in the final
weeks of our quarter in January," Medtronic Chief Executive
Officer Geoff Martha said, adding that procedures are expected
to recover once the Omicron surge wanes.
The company said it expects fourth-quarter adjusted earnings per
share between $1.56 and $1.58.
Overall revenue for the quarter fell short of estimates, as
sales of devices such as cardiac monitors and neurostimulators
for bladder and bowel control were hit due to deferral of
elective surgeries.
Revenue at the company's heart devices unit rose 1% to $2.75
billion in the quarter. Revenue at its spinal implants unit,
which has been hit from deferred non-critical procedures during
the pandemic, rose 2% to $1.10 billion in the reported quarter.
The company's net income rose 16.5% to $1.48 billion, or $1.10
per share, in the third quarter ended Jan. 28, from $1.27
billion, or 94 cents per share, a year earlier.
Medtronic reported adjusted profit of $1.37 per share for the
third quarter. Analysts had expected a profit of $1.36 per
share, according to Refinitiv IBES data.
(Reporting by Amruta Khandekar and Bhanvi Satija in
Bengaluru;Editing by Vinay Dwivedi)
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