By Amruta Khandekar

(Reuters) – Steady sales pacemakers and heart stents might have helped. Medtronic Plc had a strong quarter, despite weak demand. This was despite an Omicron-led increase in COVID-19 and staffing shortages in most U.S. hospital facilities.

Soaring infected rates and shortfalls of healthcare workers forced hospitals to delay non-critical surgeries. The result was a decrease in demand for spinal and knee implants manufactured by Medtronic, Zimmer Biomet, and others.

Ryan Zimmerman, BTIG analyst, stated that Medtronic is able to defer procedures like spinal cord stimulation and cardiac surgery.

Medtronic’s fiscal third-quarter numbers for 2022 are expected to be less severe, however it is still going to affect their financial results.”

Medtronic’s heart devices unit has boosted revenue – https://graphics.reuters.com/MEDTRONIC-PREVIEW/dwpkrjxxnvm/chart.png

THE CONTEXT

** During its second quarter ended Oct. 29, the hit to sales of some of Medtronic’s products such as its spinal devices, which rely on elective procedures, was offset by the strength in its business that sells critical implants including pacemakers and other heart devices.

** Smaller rivals Zimmer Biomet and Edwards Lifesciences (NYSE:) have said the pressure on elective procedures has continued early into the year.

Medtronic’s spinal devices unit is a key part of its neuroscience business – https://graphics.reuters.com/MEDTRONIC-PREVIEW/akveznbknpr/chart.png

THE FUNDAMENTALS

** Medtronic, which reports results on Feb. 22, is expected to post third-quarter revenue of $7.88 billion, according to the mean estimate from 12 analysts, based on Refinitiv data

** Medtronic reported second-quarter revenue of $7.85 billion

WALL ST. SENTIMENT

** The current average rating on Medtronic shares is “buy”, with six analysts rating it “strong buy”, 15 “buy” and nine “hold”

** Wall Street’s median 12-month price target is $128

** The company’s shares have fallen about 1.69% so far this year