Medtronic Earnings: Sales Surge On New Products And Emerging Markets

The company's gross margin on an operational basis was below expectations at 73.8%, on the back of higher sales of lower-margin Bone Morphogenetic Proteins products and expenses related to addressing product quality issues in Neuromodulation and Diabetes. For the second half of fiscal 2015, the company expects gross margins to improve to around 74.5% on a constant currency basis as its cost reduction program offsets the ongoing quality improvement expenses.