Medtronic, the world’s largest maker of medical devices, has reported lower quarterly earnings as legal and other expenses ate into profits, but signs that its key heart and spine markets were stabilising sent its shares higher.

Net earnings were $646 million, or 63 US cents a share, in the three months to October 26th, down from $871 million, or 82 cents a share in the year-ago period.

Excluding one-time items, earnings were 88 cents a share, matching analysts’ forecasts.

Quarterly revenue rose 2 per cent to $4.095 billion, yet revenue from its two biggest businesses, heart rhythm management and spine, was flat to lower. The bright spot was provided by indications that these two markets – which make up about half of total revenue – were stabilising, chief executive Omar Ishrak said. – (Reuters)