Medtronic this week said it’s seeing a sharp decline in U.S. revenue as hospitals around the country delay elective surgeries.
Starting last month, the medical device maker’s weekly revenue began falling about 60 percent compared to the same point last year, Medtronic officials said in a news release. Weekly revenue has been declining in other key markets, too, though not as dramatically. In China, the company’s weekly revenues have been down between 20 percent to 40 percent, and in western Europe, weekly revenues were down 20 percent to 30 percent.
The fall in revenue stems, in part, from hospitals deciding to postpone most elective surgeries.
Still, it’s worth noting that Medtronic’s performance in China has improved marginally. Through the week of March 9, for instance, the company’s weekly revenue was down 50 percent. Medtronic president Geoff Martha said it’s a sign that of the “early stages of a global recovery.”
“As hospitals begin to resume broader treatment of non-COVID-19 patients around the world, we expect our business to begin to recover as well,” Martha said in the release.
But the pandemic will still leave a dent on the company’s fourth quarter, which wraps up on Friday.
“Given the progression of Covid-19 around the world and the timing of the company’s fiscal quarter, Medtronic’s fourth quarter financial results will reflect an additional month of impact compared to many other companies who operate on a calendar-based fiscal year,” Medtronic officials said.
Company officials anticipate an impact on year-end results, too.
Medtronic maintains that it has “ample liquidity.” In the most recent quarter, Medtronic counted more than $11 billion in cash and investments, along with a $3.5 billion unused credit facility.