What Drove Medtronic’s MITG Segment Growth?



MITG segment: 4Q17 performance

Medtronic (MDT) reported ~$7.9 billion in worldwide revenues in fiscal 4Q17. Of that total, ~$2.6 billion came from Medtronic’s MITG (Minimally Invasive Therapies Group) segment, representing ~33% of the company’s total revenues. These sales figures represent a ~6% YoY (year-over-year) rise in fiscal 4Q17 on a constant currency basis, which was in line with Medtronic’s expectation of mid-single-digit revenue growth for MITG.


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In 4Q17, MITG sales growth in the United States was around 5%. Emerging markets registered strong MITG sales growth of 21%. However, Medtronic noted weak MITG segment sales of ~2% in non-US developed markets. The segment’s surgical solutions business grew ~7%, whereas the PMR (Patient Monitoring and Recovery) business grew 4%.

Medtronic’s major competitors in the minimally invasive therapies market include Intuitive Surgical (ISRG), Johnson & Johnson (JNJ), and Smith & Nephew (SNN), which reported YoY sales growth of 13.4%, 1.6%, and 0.5%, respectively, in their most recent quarters. Notably, the iShares Core S&P 500 ETF (IVV) invests approximately 0.56% of its total holdings in MDT. 

Growth drivers

The MITG segment registered strong growth that was in line with the company’s expectations for fiscal 4Q17. The high single digit growth in the surgical solutions business driven by new product launches in the advanced energy and advanced stapling divisions was one of the major growth drivers in the quarter. The new launches are aimed at facilitating a shift from open surgical procedures to minimally invasive product platforms.

Next, we’ll look at Medtronic’s Restorative Therapies Group performance in fiscal 4Q17.


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