UPDATED August 22, 2017, with segment results, share price.
The world’s largest medical device operation today posted profits of $1.02 billion, or 74¢ per share, on sales of $7.39 billion for the three months ended July 28, for a bottom-line gain of 9.4% on sales growth of 3.1% compared with fiscal Q1 2017.
Adjusted to exclude one-time items, earnings per share were $1.12, 4¢ ahead of The Street, where analysts were looking for sales of $7.45 billion.
MDT shares, which closed up slightly yesterday at $83.52 apiece, ticked up 0.1% to $83.60 per share in pre-market activity today. The stock was down -1.8% to $82.04 per share as of about noon.
“The strength of our diversification and solid underlying performance of our businesses, combined with the stable growth of our end markets, enabled us to manage the impact of a global IT system disruption and temporary diabetes sensor supply constraint,” chairman & CEO Omar Ishrak said in prepared remarks. “While these temporary issues had affected first-quarter revenue growth, we continued to drive operating margin expansion. This resulted in double-digit constant-currency EPS growth, consistent with our long-term expectations.”
Medtronic said it now expects to grow its adjusted EPS by 9% to 10% on constant-currency sales growth of 4% to 5% for fiscal 2018.
“Looking ahead, we have now entered a period of clear acceleration in our innovation cycle and we expect to see increasing momentum coming from several new product launches over the balance of the fiscal year,” Ishrak said. “Delivering innovative medical technology, such as our Micra transcatheter pacing system and MiniMed 670G insulin pump system, expanding in markets and geographies around the world, leading the shift to value-based healthcare and purposefully deploying our capital are the foundations of our sustainable and diversified growth platform, positioning us to create value for patients, healthcare systems and our shareholders.”
Segments by the numbers
Here’s a look at how the numbers shook out for Medtronic’s business segments:
|Revenues by Segment, Q1 2018|
|Cardiac & vascular||$2,646||5.1%|
|Cardiac rhythm & heart failure||$1,390||4.2%|
|Coronary & structural heart||$817||7.2%|
|Aortic & peripheral||$439||4.0%|
|Minimally invasive therapies||$2,486||2.6%|