Medtronic (NYSE:MDT) posted fiscal first-quarter results today that beat the consensus forecast on Wall Street for both sales and earnings.
The Fridley, Minn.-based medical device titan reported profits of $864.0 million, or 64¢ per share, on sales of $7.49 billion for the three months ended July 26, amounting to a bottom-line slide of -19.6% on sales growth of 1.5%.
Adjusted to exclude one-time items, earnings per share were $1.28, 9¢ ahead of the consensus on The Street, where analysts were looking for sales of $7.40 billion.
“Medtronic had a solid first quarter, delivering revenue growth, operating margin expansion, and adjusted EPS growth all ahead of expectations,” chairman & CEO Omar Ishrak said in prepared remarks. “It’s a good start to our fiscal year.”
Medtronic stood pat on its top-line outlook for the rest of fiscal 2020 and raised its earnings guidance, saying it now expects to put up adjusted EPS of $5.54 to $5.60, compared with $5.44 to $5.50 previously, on organic sales growth of 4.0%.
“As a result of our first-quarter outperformance and confidence in our outlook, we are raising our full year EPS guidance,” Ishrak said. “We’re excited about what lies ahead, as we expect the investments we’ve made in our pipeline to begin to pay off with multiple pipeline catalysts, accelerating revenue growth, and value creation for our shareholders.”
MDT shares, which closed up 1.4% at $104.18 apiece yesterday, gained another 3.5% to $107.77 today in pre-market trading.
Segments by the numbers
Here’s a look at how the numbers shook out for Medtronic’s business segments during the first quarter:
| Revenues by Segment, Q1 2020 | ||
| Segment | Revenues ($m) | %± Y/Y |
| Cardiac & vascular | $2,790 | -0.7% |
| Cardiac rhythm & heart failure | $1,382 | -3.1% |
| Coronary & structural heart | $941 | 2.6% |
| Aortic & peripheral | $467 | -0.2% |
| Minimally invasive therapies | $2,100 | 2.3% |
| Surgical Innovations | $1,417 | 1.4% |
| Respiratory, GI & Renal | $683 | 4.3% |
| Restorative therapies | $2,012 | 3.2% |
| Spine | $658 | 0.9% |
| Brain | $740 | 9.8% |
| Specialty | $332 | 4.2% |
| Pain | $292 | -7.0% |
| Diabetes | $592 | 3.5% |
