Medtronic plc ( MDT Quick Quote MDT - Free Report) reported second-quarter fiscal 2021 adjusted earnings per share (EPS) of $1.02, beating the Zacks Consensus Estimate by 30.8%. Adjusted earnings however plunged 22.1% year over year. Currency-adjusted EPS came in at $1.06 for the quarter. Without certain one-time adjustments — including restructuring, acquisition, amortization expenses and certain litigation charges — GAAP EPS was 36 cents, reflecting a 64.4% decline from the year-ago reported figure. Total Revenues Worldwide revenues in the reported quarter grossed $7.65 billion, down 1.5% on an organic basis (excluding the impacts of currency) and dipped 0.8% on a reported basis. The top line however beat the Zacks Consensus Estimate by 8.5%. In the quarter under review, U.S. sales (53% of total revenues) declined 2% year over year on a reported basis (same on an organic basis) to $4.05 billion. Non-U.S. developed market revenues totaled $2.45 billion (32% of total revenues), depicting a 6% improvement on a reported basis (up 1% on an organic basis). Merging market revenues (15% of total revenues) amounted to $1.15 billion, down 9% on a reported basis (down 6% organically). Segment Details The company currently generates revenues from four major segments, namely Cardiac and Vascular Group (“CVG”), Minimally Invasive TherapiesGroup (“MITG”), Restorative Therapies Group (“RTG”), and Diabetes Group. CVG comprises Cardiac Rhythm & Heart Failure (“CRHF”), Coronary & Structural Heart (“CSH”), and Aortic & Peripheral Vascular divisions (“APV”). MITG includes Surgical Innovations (“SI”), and Respiratory, Gastrointestinal & Renal (“RGR”) divisions. RTG consists of Spine, Brain Therapies, Specialty Therapies and Pain Therapies segments, while Diabetes Group incorporates Intensive Insulin Management (“IIM”), Non-Intensive Diabetes Therapies (“NDT”) and Diabetes Service & Solutions (“DSS”) divisions. In the fiscal second quarter, CVG revenues declined 5.5% at CER to $2.73 billion, representing a decrease in deferrable procedure volumes due to the pandemic. CRHF sales totaled $1.43 billion, down 1.3% year over year at CER. Revenues from CSH were down 13.6% at CER to $831 million. APV revenues were down 1.9% at CER to $468 million. In MITG, worldwide sales totaled $2.29 billion, marking a 6.9% year-over-year improvement at CER. A decline in procedure volumes in the quarter was offset by increased demand for COVID-19 related diagnostics and therapies. Surgical Innovations’ 4.9% organic decline was more than offset by 29.7% organic revenue growth in RGR. In RTG, worldwide revenues of $2.06 billion were down 2.9% year over year at CER, impacted by pandemic-led decline in procedure volumes. There was mid-single-digit declines in Cranial and Spinal Technologies, flat sales in Specialty Therapies, and low-single digitdeclines in Neuromodulation. Revenues at the Diabetes group decreased 5% at CER to $574 million. Margins Gross margin in the reported quarter contracted 431 basis points (bps) to 64.6% on a 6.9% decline in gross profit to $4.94 billion. Adjusted operating margin contracted 483 bps year over year to 22.3%. Selling, general and administrative expenses fell 0.8% to $2.60 billion, while research and development expenses increased 5.9% to $639 million. Guidance On account of the uncertainty with respect to the COVID-19 pandemic, this time too, Medtronic has decided not to provide any annual or quarterly financial guidance. Our Take While Medtronic’s second-quarter fiscal 2021 earnings and revenues were ahead of the respective Zacks Consensus Estimate, the company registered year-over-year decline in these figures. Barring Respiratory, Gastrointestinal, & Renal as well as Specialty Therapiesthere were declining performance in the rest of the business segments. The company’s performance was primarily impacted by deferred procedures due to the pandemic. Escalating costs and expenses put pressure on its margins. Unfavorable currency movement once again deterred growth in the quarter. However, the company reported sequential improvement in all of its businesses and geographies leading to faster-than-expected recovery. Medtronic is currently in the process of implementing its new operating model. The company is focusing on the geographical diversification of its businesses, apart from product innovation. Zacks Rank & Recent Releases Medtronic currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Hologic ( HOLX Quick Quote HOLX - Free Report) reported adjusted earnings per share of $2.07 in fourth-quarter fiscal 2020, which beat the Zacks Consensus Estimate by 69.7%. The stock carries a Zacks Rank #1. Align Technology ( ALGN Quick Quote ALGN - Free Report) reported third-quarter 2020 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 281.4%. The stock carries a Zacks Rank #2 (Buy). BioRad Laboratories ( BIO Quick Quote BIO - Free Report) third-quarter 2020 adjusted earnings per share of $3.00 beat the Zacks Consensus Estimate by 62.2%. The stock carries a Zacks Rank #2. Biggest Tech Breakthrough in a Generation Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. 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