Medtronic Sales Slide 26 Percent in Q4
Medtronic logged a 26 percent dip in revenue in its fourth quarter, the company reported late last week.
The medical device giant, which is headquartered in Ireland but has operational headquarters in Fridley, saw quarterly revenue fall to nearly $6 billion, down from $8.1 billion in Q4 2019. Medtronic’s net income also fell by nearly 50 percent to $646 million, or about 48 cents a share. The company’s revenue and earnings missed analysts’ expectations, though Medtronic officials say the results were consistent with guidance issued last month.
“Our financial position remains strong,” Medtronic CEO Geoff Martha said in a news release. “[W]e are purposely investing to drive not only a strong recovery, but also consistent, long-term growth. As we emerge, the investments that we’ve made will be evident in our attraction and retention of top talent, and in the new, innovative products and solutions that we’ll offer physicians, patients, and healthcare systems.”
During the fourth quarter, sales in the cardiac and vascular group, which clocked in at about $2 billion, outpaced all other sectors. Still, the cardiac and vascular group saw a 34.3 percent year-over-year decline.
Medtronic’s stock took a small hit on May 21, when the company reported its quarterly earnings. Value of the stock dropped from $98 the day prior to about $95. By Tuesday morning, Medtronic’s stock climbed back up to $97.22.
In a note to clients cited by Investor’s Business Daily, Edward Jones analyst Ashtyn Evans said the fourth quarter marked the “peak” of the coronavirus impact on Medtronic.
“Medtronic is seeing signs of procedure recovery,” Evans noted. “In response to the pandemic, Medtronic has ramped up its production of ventilators and has continued to pay its sales representatives.”
Medtronic officials said the company won’t be releasing annual or quarterly guidance “given the uncertainty on near-term financial results caused by the Covid-19 pandemic.”