By Amruta Khandekar

(Reuters) -Changes in pacemakers and heart stents sales may have helped Medtronic Plc offset weaker demand for other medical devices. This was in spite of a quarter which saw an Omicron-led increase in COVID-19 and staffing shortages in most U.S. hospital.

Hospitals were overwhelmed by rising infections and shortages in nurses, so they had to postpone non-critical procedures. This lowered demand for spine and knee implants from companies like Medtronic or Zimmer Biomet.

Ryan Zimmerman, BTIG analyst said that Medtronic’s procedures, such as cardiac surgery, aren’t experiencing delays. However, they can delay in spinal cord stimulation or spine.

Medtronic is less affected, but the overall impact on their third quarter fiscal 2022 results will be greater.”

Click here for an interactive graphic: https://tmsnrt.rs/3sSVnLw

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.

Click here for an interactive graphic: https://tmsnrt.rs/3LL3HFO

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 STREET 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

Quarter ENDING EPS Actual EPS Beat, MET

MISSED ESTIMATE ($).

($)

Oct. 29, 2021 $1.29 1.32 BEAT

July. June.

April. April.

Jan. 29, 2021 $1.15 $2.29 BEAT

October 30, 2020 $0.80 $1.02 BEATS

July 31. 2020 $0.18 $0.62 BEAT