The world’s largest medical device business put up profits of $1.08 billion, or 79¢ per share, on sales of $7.38 billion for the three months ended July 27, for a bottom-line gain of 5.8% on flat sales compared with fiscal Q1 2018. Adjusted to exclude one-time items, earnings per share were $1.17, 6¢ ahead of the consensus on Wall Street, where analysts were looking for sales of $7.24 billion.
“We are executing against our plan, growing our markets and driving share gains across multiple businesses and geographies,” chairman & CEO Omar Ishrak said in prepared remarks. “We are excited about the growth opportunities in our end markets, and we are bullish about our competitive position,” said Ishrak. “Our pipeline of innovation, invention, and disruption has never been stronger. We are also putting the pieces in place to improve free cash flow conversion, creating additional capital that can be returned to shareholders and reinvested to drive future growth, all with a goal of creating long-term shareholder value.”
Fridley, Minn.-based Medtronic said it still expects to post adjusted EPS of $5.10 to $5.15 this year but raised its organic sales outlook to 4.5 percent to 5.0 percent, compared with 4.0 percent to 4.5 percent previously.
MDT shares rose 3.8% to $93.50 apiece this morning in pre-market trading.
Segments by the numbers
Here’s a look at how the numbers shook out for Medtronic’s business segments:
|Revenues by Segment, Q1 2019|
|Segment||Revenues ($m)||%± Y/Y|
|Cardiac & vascular||$2,811||6.2%|
|Cardiac rhythm & heart failure||$764||-0.1%|
|Coronary & structural heart||$362||14.6%|
|Aortic & peripheral||$263||4.4%|
|Minimally invasive therapies||$2,052||-17.5%*|
|Respiratory, GI & Renal||$301||N/A|
* Fiscal 2018 Q1 includes revenues from the patient monitoring and recovery business sold to Cardinal Health last year; excluding those results, MITG sales grew 2.6%.
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