Shares of medical device makers moved higher Tuesday afternoon, after Medtronic Inc. posted fiscal fourth-quarter earnings that soundly beat Wall Street estimates.
Medtronic reported flat earnings of $812 million, or 72 cents per share, compared with $812 million, or 70 cents, a year earlier. But excluding one time charges, the company earned 78 cents a share, besting analysts' average target of 72 cents a share, according to Thomson Financial.
The Minneapolis-based company also forecast fiscal year 2009 earnings per share of $2.94 to $3.02 on revenue of $15 billion to $15.5 billion. Analysts expect profit of $2.96 per share on revenue of $15.1 billion.
Although the guidance was in the mid range of analyst expectations, some "skepticism and concern with regard to management's ability to hit these targets given the company's history is likely to predominate investors thinking in front of the June 2 Investor Day in New York," Cowen & Co. analyst Sara Michelmore, who rates shares "Neutral," wrote in an note to investors Tuesday.
She added that any share gains made as a result of the fourth-quarter results would likely be short lived going into the investors meeting.
In afternoon trading, Medtronic shares added 83 cents to $48.72. St. Jude shares edged up 11 cents to $40.84. Boston Scientific advanced 24 cents to $13.61. Johnson & Johnson bucked the trend with shares down 46 cents to $66.16.
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