Medtronic (NYSE:MDT) had much to tout with its pipeline as it released Street-beating fourth-quarter results.
CEO Geoff Martha announced to analysts that FDA has granted the company’s much-anticipated Hugo robot an investigational device exemption approval.
Medtronic is preparing to commence its Expand Uro trial in the U.S. to study Hugo in urologic procedures, Martha said during today’s earnings call, transcribed by Seeking Alpha.
Meanwhile, renal denervation appears to be back as a promising treatment for hypertension. Medtronic expects to release its On Med pivotal trial results later this year, likely at the TCT Conference in November. Martha thinks the results are “likely to be one of the most highly anticipated events in medtech this year.”
CFO Karen Parkhill added: “Two of our largest opportunities are surgical robotics and renal denervation. We’re purposely making significant investments in them to ensure we fully capitalize on the multi-billion dollar opportunities ahead.”
Medtronic posted profits of $1.4 billion, or $1 per share, on sales of $8.2 billion for the three months ended April 30, 2021, for a more-than doubled bottom line on sales growth of 36.5% year-over-year.
Adjusted to exclude one-time items, earnings per share were $1.50, 8¢ ahead of Wall Street, where analysts were looking for sales of $8.1 billion.
Medtronic saw growth across its four business segments, with its neuroscience business leading the way at revenue increases of 54%. Cardiovascular (45.1%), medical surgical (20.9%) and diabetes (13.5%) followed. (This was the first time that Medtronic reported under its new corporate structure — the result of a major restructuring.)
The company also announced a 9% dividend increase, raising its quarterly amount to 63¢ per share. Plus the company plans to boost its R&D spend 10% in its new fiscal year, which CEO Geoff Martha touted as the largest dollar increase in research spending in the companies history.
“We’re ultra-focused on accelerating our topline growth, and we’re making incremental investments to put us in a place to drive a sustainable, higher level of growth than you have historically come to expect from Medtronic,” Martha said.
Medtronic’s markets have returned to near normal, pre-COVID growth rates, Martha said.
Medtronic now expects to log adjusted EPS of between $5.60 and $5.75 across fiscal 2022. The company set its sales guidance for growth of approximately 9%, affected by about $400 million to $500 million.
MDT shares were mostly flat at $126.22 apiece by late afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was also up a bit.
Executive editor Chris Newmarker contributed to this report.