(Reuters) -Medtronic Plc edged past quarterly profit estimates on Tuesday, as strength in its critical heart implants business cushioned weakness in segments such as pelvic health during the Omicron-led surge in COVID-19 infections.
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)
