uploads/2018/12/CVG.png

How Medtronic’s Cardiac and Vascular Group Performed

By

Updated

Cardiac & Vascular Group revenue trends

Medtronic’s (MDT) Cardiac & Vascular Group generated revenues of $2.9 billion in the second quarter of fiscal 2019 compared to $2.8 billion in the second quarter of fiscal 2018, reflecting ~3% YoY growth.

The company’s Cardiac & Vascular Group generated revenues of $5.7 billion over the first nine months of fiscal 2019 compared to $5.4 billion in the same period the prior year, reflecting ~5% YoY growth.

Article continues below advertisement

Regional revenue trends

In the US market, the Cardiac & Vascular Group’s revenues rose 4% YoY in the second quarter of fiscal 2019 to reach $1.5 billion. The Cardiac & Vascular Group’s net revenues over the first six months of 2019 totaled $2.87 billion compared to $2.76 billion in the same period the prior year.

In the non-US developed region (Western European countries, Japan, Korea, Canada, Australia, and New Zealand) and emerging markets, the Cardiac & Vascular Group’s net revenues over the first six months of fiscal 2019 amounted to $1.84 billion and $956.0 million, respectively, compared to $1.78 billion and $881.0 million in the same period the prior year, reflecting ~3% and 9% YoY growth.

Peer performance

In the third quarter, Medtronic’s (MDT) peers in the cardiovascular medical devices market, Edward Lifesciences (EW) and Baxter International (BAX) reported revenues of $921.0 million and $2.8 billion, respectively, reflecting ~9.84% and ~2.22% YoY growth. In Johnson & Johnson’s medical device division, interventional solutions generated revenues of $653.0 million in the third quarter of this year, reflecting ~18.1% YoY growth.

The growth on sales of Medtronic’s Cardiac & Vascular Group products could significantly boost the revenue growth of the company, which in turn could boost the iShares Evolved U.S. Healthcare Staples ETF (IEHS). Medtronic makes up about ~3.78% of IEHS’s total portfolio holding.

In the next article, we’ll discuss Medtronic’s Cardiac & Vascular group.

Advertisement

More From Market Realist