Fiscal 1st-quarter earnings for Medtronic (NYSE:MDT) beat Wall Street’s consensus forecast today, despite a -1.5% sales decline.
The world’s largest pure-play medical device maker posted profits of $929 million, or 66¢ per share, on sales of $7.17 billion for the 3 months ended July 29 – a 13.3% increase for the bottom line.
Adjusted to exclude 1-time items, earnings per share were $1.03*, 2¢ ahead of The Street, where analysts were looking for sales of $7.17 billion. Medtronic said sales grew more that 5% on a constant-currency basis.
“Q1 was another strong quarter for Medtronic, where our diversified businesses and geographies delivered solid results,” chairman & CEO Omar Ishrak said in prepared remarks. “In addition to our solid top- and bottom-line performance, we also continue to generate significant free cash flow, and we continue to strategically deploy our capital against our priorities of reinvesting with discipline in M&A and R&D, returning substantial cash to our shareholders, and deleveraging our balance sheet.
“We feel very good about our momentum to start our fiscal year, and we are confident in our ability to sustain this performance over the coming quarters,” Ishrak added.
Medtronic stood pat on its guidance for fiscal 2017, saying it still expects to post adjusted EPS of $4.60 to $4.70 on constant-currency sales growth of 12% to 16%.
MDT shares ticked up 0.4% to $87 even today in pre-market trading.
Here’s a look at how Medtronic’s Q1 2017 revenues broke down among its segments:
Cardiac & Vascular | $2,518 | $2,571 | -2.1% | |
Cardiac Rhythm & Heart Failure | $1,334 | $1,369 | -2.6% | |
Coronary & Structural Heart | $762 | $788 | -3.3% | |
Aortic & Peripheral Vascular | $422 | $414 | 1.9% | |
Minimally Invasive Therapies | $2,424 | $2,456 | -1.3% | |
Surgical Solutions | $1,348 | $1,352 | -0.3% | |
Patient Monitoring & Recovery | $1,076 | $1,104 | -2.5% | |
Restorative Therapies | $1,772 | $1,802 | -1.7% | |
Spine | $645 | $685 | -5.8% | |
Brain Therapies | $489 | $462 | 5.8% | |
Specialty Therapies | $356 | $346 | 2.9% | |
Pain Therapies | $282 | $309 | -8.7% | |
Diabetes | $452 | $445 | 1.6% |
*Correction, August 25, 2016: This article originally mis-stated Medtronic’s Q1 2017 adjusted EPS as $1.07; that number is in terms of constant currency. Return to the corrected sentence.