Medtronic Presents Positive Data, Kinross Gold Corporation Reports Strong Earnings

Strategic Insights -

Medtronic recently presented positive data from its RAFT study, showing that its cardiac resynchronization therapy-defibrillators (CRT-Ds) reduced the risk of death by 29% in heart patients with New York Heart Association (NYHA) class II compared to those treated with implantable cardioverter-defibrillators (ICDs) and medical therapy. The data is significant for Medtronic as Cardiac Rhythm Disease Management (CRDM) is its largest segment, contributing 33% of total revenues. However, this segment generated $1,226 million in sales during the first quarter of fiscal 2011, down 8.3% compared to the year-ago period. Kinross Gold Corporation, on the other hand, reported strong earnings, with net income of $121.6 million or 17 cents per share in the third quarter of 2010, surpassing the Zacks Consensus Estimate of 16 cents per share.

Key Takeaways:

  • Medtronic's cardiac resynchronization therapy-defibrillators (CRT-Ds) reduced the risk of death by 29% in heart patients with NYHA class II compared to those treated with ICDs and medical therapy.
  • The use of CRT-Ds along with medical treatment and ICDs saves lives of these patients, although the use of CRT-Ds is not yet approved in the US for class II heart patients.
  • Medtronic's CRDM segment generated $1,226 million in sales during the first quarter of fiscal 2011, down 8.3% compared to the year-ago period.
  • Kinross Gold Corporation reported strong earnings, with net income of $121.6 million or 17 cents per share in the third quarter of 2010, surpassing the Zacks Consensus Estimate of 16 cents per share.
  • The company's revenues leaped 26% to $735.5 million due to an increase of 24.5% in average realized gold price to $1,190 per ounce.
  • Gold production increased 7% to 575,065 ounces driven by improved performance at the Paracatu expansion plant, the addition of new production from the heap leach at Fort Knox, and the acquisition of Red Back assets.
  • Kinross expects production of about 2.2 million ounces of gold in 2010 at a cost of $460-$490 per ounce.
  • The company expects costs to average at the higher end of the range, with production levels shrinking at some of its existing operations.
  • About 40% of Kinross' gold reserves are located in Chile, which is presently experiencing significant production declines.

Statistics:

  • Medtronic's CRDM segment contributed 33% of total revenues.
  • The segment generated $1,226 million in sales during the first quarter of fiscal 2011, down 8.3% compared to the year-ago period.
  • Kinross Gold Corporation reported net income of $121.6 million or 17 cents per share in the third quarter of 2010.
  • The company's revenues leaped 26% to $735.5 million due to an increase of 24.5% in average realized gold price to $1,190 per ounce.
  • Gold production increased 7% to 575,065 ounces.
  • Kinross expects production of about 2.2 million ounces of gold in 2010 at a cost of $460-$490 per ounce.

Sources:

  • [http://www.zacks.com/](http://www.zacks.com/)
  • [http://at.zacks.com/?id=4579](http://at.zacks.com/?id=4579)
  • [http://at.zacks.com/?id=5514](http://at.zacks.com/?id=5514)
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