uploads///equipment _

How Did Medtronic Perform in Fiscal Q1 2019?

By

Updated

Revenue trends

Medtronic (MDT) reported its results for the fiscal first quarter of 2019 on August 21. It reported revenue of $7.38 billion in the quarter, which reflected a ~0.1% YoY (year-over-year) fall. It had witnessed a ~6.8% YoY rise in the fiscal first quarter of 2018.

In the fiscal first quarter of 2019, in the US market, Medtronic generated revenue of $3.86 billion compared to $4.04 million in the fiscal first quarter of 2018, reflecting a ~4% YoY fall.

In the quarter, in non-US developed and emerging markets, Medtronic reported revenues of $2.4 billion and $1.1 billion, respectively, compared to $2.3 billion and $1.0 billion, respectively, in the fiscal first quarter of 2018, reflecting rises of ~4% and ~8% YoY, respectively.

In the quarter, Medtronic’s diabetes care group significantly boosted the company’s revenue. The diabetes care group generated revenue of $324.0 million, which reflected ~33% YoY growth.

Article continues below advertisement

Earnings trends

In the quarter, Medtronic reported net income of $1.1 billion compared to $1.0 billion in the fiscal first quarter of 2018. Medtronic reported diluted EPS of $0.79 in the quarter compared to $0.74 in the fiscal first quarter of 2018.

In the quarter, Medtronic reported an operating profit of $1.2 billion compared to $1.4 billion in the same quarter of the previous year.

Expense trends

In the fiscal first quarter of 2019, Medtronic reported a cost of products sold of $2.2 billion compared to $2.4 billion in the fiscal first quarter of 2018.

In the quarter, Medtronic reported R&D (research and development) and SG&A expenses of $585.0 million and $2.6 billion, respectively, compared to $549 million and $2.58 billion, respectively, in the previous year.

Medtronic reported expenditure in amortization of intangible assets and restructuring charges of $446.0 million and $62.0 million, respectively, in the fiscal first quarter of 2019.

Medtronic’s peer Becton, Dickinson and Company (BDX) reported revenue of $4.3 billion in the fiscal third quarter of 2018. Peers Boston Scientific (BSX) and Stryker (SYK) reported revenues of $2.49 billion and $3.3 billion, respectively, in the second quarter.

According to Medtronic, the term “non-US developed markets” refers to Japan, Australia, New Zealand, Korea, Canada, and Western European countries, while “emerging markets” refers to countries in the Middle East, Africa, Latin America, and Eastern Europe along with any Asian countries not covered in its non-US developed markets.

Advertisement

More From Market Realist