Medtronic Posts Sales Growth In Every Department In Strong Q4
Strong sales growth in all four of its core business segments allowed Medtronic to handedly surpass estimates from Wall Street in its fourth quarter report released Tuesday.
The medical device maker from Fridley recorded worldwide revenue of $7.6 billion for the three-month period ending April 29. This was a 4 percent increase from the $7.3 billion in revenue it reported a year ago.
Medtronic’s income also beat the previous year’s mark by a wide margin. After posting a net loss of $1 million last year, the company escaped the red this time around with $1.1 billion in profits, or about 1.27 cents per share.
Wall Street estimates pegged Medtronic as having sales of $7.5 billion and per-share profits of $1.26.
Medtronic—now with a year under its belt after the $50 billion acquisition for Irish med-tech company Covidien—noted significant gains from the deal. Had Medtronic not purchased Covidien, the company believes its full-year revenue would have only grown 7 percent. Instead, the company reported a 42 percent gain in its revenue for the fiscal year, which came in at $28.8 billion.
“This quarter caps a transformative year for Medtronic, our first full year after closing the largest ever med-tech acquisition,” Medtronic CEO Omar Ishrak said in prepared remarks. “I am pleased with the execution and focus of our teams around the world who delivered sustained revenue growth and exceeded our Covidien cost synergy commitments.”
Looking toward fiscal 2017, the company is aiming for revenue growth of about 5 to 6 percent and earnings per share to fall between $4.60 and $4.70.
“As we enter our new fiscal year, we look forward to delivering on our robust pipeline of products and services, expanding our global reach to serve more patients, and partnering with others around the world to develop new value-based business models,” Ishrak added.
Cardiac care tops the charts
Medtronic’s cardiac and vascular group, the business sector behind its pacemakers and heart monitoring systems, touted a 5 percent year-over-year sales increase to $2.7 billion for the quarter.
Its next largest group, the minimally invasive therapies division, had $2.5 billion in sales, a 3 percent jump from the same time last year. Medtronic’s restorative therapies sector had a slight growth in sales, up 1 percent to $1.9 billion.
The most significant sales increase, however, came in the company’s smallest division, its diabetes group. Fourth quarter revenue grew 6 percent to $496 million, while the group’s future sales are expected to surge even more pending the success of its recently-made partnerships.
Medtronic stock dipped slightly during early morning trading. Shares fell about $1.50 below the Friday close of $81.69.