The Fridley, Minn.-based company posted profits of $494 million, or 36¢ per share, on sales of $7.6 billion for the three months ended Oct. 30, 2020, for a -64% bottom-line slide on a sales decline of 0.8%.
Adjusted to exclude one-time items, earnings per share were $1.02, 22¢ ahead of Wall Street, where analysts were looking for sales of $7.1 billion.
Medtronic’s cardiac & vascular business dipped -4.6% as a result of declining procedures because of the COVID-19 pandemic. However, its minimally invasive therapies group shot up 6.7% because of its COVID-19-related diagnostics and therapies, such as ventilation. Another bright spot involved Medtronic’s Micra leadless pacemaker system, which continues to see global adoption.
“We’re seeing a faster-than-expected recovery and approaching year-over-year growth,” Medtronic CEO Geoff Martha said in a news release. “Our revenue growth is improving, our pipeline is advancing, and we’re gaining share in an increasing number of businesses. At the same time, we’re in the process of implementing our new operating model and augmenting our culture with a focus on market share and being bold.
“Despite the challenges posed by the pandemic, we’re well-positioned to accelerate growth over the medium- and long-term as we continue investing in and progressing a number of opportunities, creating value for society and our shareholders.”
Medtronic said it is not providing financial guidance for the coming quarter or for the full year as a result of uncertainties brought on by the COVID-19 pandemic.
The company has also kicked off a major restructuring — with expected annual savings of $450 million to $475 million by 2023, and Martha has said he’s only looking forward to whatever the post-pandemic, new normal brings, while the company is preparing for that by “being bold” and “adding grit.”
MDT shares were up 2.4% at $113.70 per share before hours today. Shares increased even more, trading up 2.7% at $113.94 per share at midday. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was slightly down at less than -1% at midday today.