-
Q4 Revenue of $8.1 Billion,
Flat as Reported and Grew 3.6% Organic
-
Q4 GAAP Diluted EPS of $0.87;
Q4 Non-GAAP Diluted EPS of $1.54
-
FY19 Revenue of $30.6 Billion
Grew 2.0% Reported and 5.5% Organic
-
FY19 GAAP Diluted EPS of
$3.41; FY19 Non-GAAP Diluted EPS of $5.22
-
FY19 Cash Flow from Operations
of $7.0 Billion Grew 50%; FY19 Free Cash Flow of $5.9 Billion Grew
62%
-
Company Issues FY20
Guidance
DUBLIN - May 23, 2019 -
Medtronic plc (NYSE:MDT) today announced financial results for its
fiscal year and fourth quarter 2019, which ended April 26,
2019.
Medtronic's fiscal year 2019 revenue of $30.557
billion increased 2.0 percent, or 5.5 percent on an organic basis,
adjusting for the divestiture of certain businesses to Cardinal
Health that occurred in the second quarter of fiscal year 2018 and
the $455 million negative impact from foreign currency. As
reported, fiscal year 2019 net earnings were $4.631 billion or
$3.41 per diluted share. As detailed in the link at the end of this
release, fiscal year 2019 non-GAAP earnings and diluted earnings
per share (EPS) were $7.089 billion and $5.22, respectively, both
representing increases of 9 percent. Adjusting for the divestiture
and a positive 7 cent impact from foreign currency, fiscal year
2019 non-GAAP diluted EPS increased 10 percent.
Fiscal year 2019 cash flow from operations was
$7.007 billion. Fiscal year 2019 free cash flow was $5.873 billion
versus $3.616 billion in the prior year, an increase of 62
percent.
The company reported fourth quarter worldwide
revenue of $8.146 billion, flat as reported or 3.6 percent growth
on an organic basis, which adjusts for a $289 million negative
impact from foreign currency. As reported, fourth quarter GAAP net
income and diluted EPS were $1.172 billion and $0.87, respectively.
As detailed in the financial schedules included through the link at
the end of this release, fourth quarter non-GAAP net income and
non-GAAP diluted EPS were $2.077 billion and $1.54, respectively,
increases of 7 percent and 8 percent, respectively. Adjusting for a
negative 1 cent impact from foreign currency, fourth quarter
non-GAAP diluted EPS increased 9 percent.
Fourth quarter U.S. revenue of $4.284 billion
represented 52 percent of company revenue and increased 2.3 percent
as reported. Non-U.S. developed market revenue of $2.575 billion
represented 32 percent of company revenue and decreased 5.3 percent
as reported and increased 1.7 percent on a constant currency basis.
Emerging market revenue of $1.287 billion represented 16 percent of
company revenue and increased 3.9 percent as reported and 12.0
percent on a constant currency basis.
"Q4 was a solid finish to a strong fiscal year for
Medtronic. In fiscal year 2019, we executed and delivered revenue
growth, EPS, and free cash flow all above the guidance we set at
the beginning of the year," said Omar Ishrak, Medtronic chairman
and chief executive officer. "Our organization overcame challenges
and relied upon the diversification of our business to deliver
another quarter of solid top- and bottom-line results, with
excellent free cash flow generation."
Cardiac and Vascular
Group
The Cardiac and Vascular Group (CVG) includes the Cardiac Rhythm
& Heart Failure (CRHF), Coronary & Structural Heart (CSH),
and Aortic, Peripheral & Venous (APV) divisions. CVG fiscal
year 2019 revenue of $11.505 billion increased 1.3 percent as
reported and 2.9 percent on a constant currency basis. CVG fourth
quarter revenue of $3.050 billion decreased 2.7 percent as reported
and increased 1.1 percent on a constant currency basis. CVG fourth
quarter revenue performance was driven by mid-single digit growth
in APV and CSH, offset by low-single digit declines in CRHF, all on
a constant currency basis.
-
Cardiac Rhythm & Heart
Failure fourth quarter revenue of $1.554 billion decreased 4.8
percent as reported or 1.4 percent on a constant currency basis.
Arrhythmia Management grew in the mid-single digits on a constant
currency basis, driven by high-twenties growth of the
TYRX® Absorbable
Antibacterial Envelope, high-teens growth of the Reveal LINQ(TM)
Insertable Cardiac Monitoring System, and mid-teens growth in AF
Solutions, all on a constant currency basis. This was offset by
low-double digit declines in Heart Failure, including high-thirties
declines in sales of left ventricular assist devices (LVADs), both
on a constant currency basis.
-
Coronary & Structural
Heart fourth quarter revenue of $994 million decreased 1.1
percent as reported or increased 3.6 percent on a constant currency
basis, led by low-double digit constant currency growth in sales of
transcatheter aortic valves, reflecting the clinical benefits of
the CoreValve®
Evolut® PRO platform,
and high-single digit growth in Cardiac Surgery. Coronary declined
in the low-single digits, as mid-single digit declines in
drug-eluting stents offset mid-teens growth in coronary balloons
and high-single digit growth in guide catheters, all on a constant
currency basis.
-
Aortic, Peripheral &
Venous fourth quarter revenue of $502 million increased 1.0
percent as reported or 4.4 percent on a constant currency basis.
Venous grew in the high-single digits on a constant currency basis
on continued strong adoption of the VenaSeal(TM) closure system.
Aortic grew in the mid-single digits on a constant currency basis,
reflecting strong demand for the Valiant Navion(TM) thoracic stent
graft system. Peripheral grew in the low-single digits, as
low-double digit growth in PTA balloons and high-single digit
growth in atherectomy offset high-single digit declines in
drug-coated balloons, all on a constant currency basis.
Minimally Invasive Therapies
Group
The Minimally Invasive Therapies Group (MITG) includes the Surgical
Innovations (SI) and the Respiratory, Gastrointestinal & Renal
(RGR) divisions. MITG fiscal year 2019 revenue of $8.478 billion
decreased 2.7 percent as reported and increased 5.8 percent on a
comparable, constant currency basis. MITG fourth quarter revenue of
$2.255 billion increased 0.8 percent as reported or 5.1 percent on
a constant currency basis. MITG fourth quarter revenue was driven
by balanced growth across both divisions, with mid-single digit
constant currency growth in both SI and RGR.
-
Surgical Innovations fourth
quarter revenue of $1.529 billion increased 1.1 percent as reported
or 5.8 percent on a constant currency basis, driven by high-single
digit constant currency growth in Advanced Energy on continued
strong sales of LigaSure(TM) vessel sealing instruments with
innovative nano-coating and Valleylab(TM) FT10 energy platform.
Advanced Stapling grew in the mid-single digits on a constant
currency basis, driven by strong demand for Tri-Staple(TM) 2.0 endo
stapling specialty reloads and the Signia(TM) powered stapler.
Surgical Innovations managed through a difficult issue in its
sterilization supply chain, which had no net impact on revenue but
did impact quarterly operating profit.
-
Respiratory, Gastrointestinal
& Renal fourth quarter revenue of $726 million increased
0.3 percent as reported or 3.6 percent on a constant currency
basis. Respiratory and Patient Monitoring grew in the mid-single
digits on a constant currency basis on strong sales of Puritan
Bennett(TM) 980 ventilators, McGRATH(TM) MAC video laryngoscopes,
Microstream(TM) capnography monitoring products, and INVOS(TM)
cerebral oximetry systems. Renal Care Solutions grew mid-single
digits on a constant currency basis, and GI Solutions grew
low-single digits on a constant currency basis, with solid growth
in PillCam(TM) systems.
Restorative Therapies
Group
The Restorative Therapies Group (RTG) includes the Brain Therapies,
Spine, Specialty Therapies, and Pain Therapies divisions. RTG
fiscal year 2019 revenue of $8.183 billion increased 5.7 percent as
reported and 6.6 percent on a constant currency basis. RTG fourth
quarter revenue of $2.215 billion increased 4.1 percent as reported
or 6.5 percent on a constant currency basis. RTG fourth quarter
results were driven by low-double digit growth in Brain Therapies,
high-single digit growth in Specialty Therapies, mid-single digit
growth in Pain Therapies, and low-single digit growth in Spine, all
on a constant currency basis.
-
Brain Therapies fourth
quarter revenue of $737 million increased 9.7 percent as reported
or 12.8 percent on a constant currency basis, driven by high-teens
constant currency growth in Neurovascular and mid-teens constant
currency growth in Neurosurgery. Neurovascular results were
broad-based, with low-twenties growth in stent retrievers, coils,
flow diversion, and high-teens growth in neuro access, all on a
constant currency basis. Neurosurgery was led by strong capital
equipment sales of Mazor X(TM) robotic guidance systems,
StealthStation® S8 surgical
navigation systems, Midas Rex® powered
surgical instrument systems, and O-arm® surgical
imaging systems.
-
Spine fourth quarter
revenue of $691 million decreased 1.1 percent as reported and or
increased 0.7 percent on a constant currency basis. When combined
with the company's sales of enabling technology used in spine
surgeries, including robotics, navigation, imaging, and powered
surgical instruments that are recognized in the Brain Therapies
division, global Spine revenue grew in the mid-single digits and
U.S. Core Spine revenue grew in the low-double digits on a constant
currency basis. Cervical spine products grew mid-single digits on a
constant currency basis, driven by the continued launch of the
Infinity(TM) OCT system and solid growth of the Prestige LP(TM)
cervical disc system.
-
Specialty Therapies fourth
quarter revenue of $445 million increased 5.0 percent as reported
or 6.8 percent on a constant currency basis. Results were led by
high-teens constant currency growth in Transformative Solutions, on
strong sales of Aquamantys(TM) bipolar sealers and PlasmaBlade(TM)
dissection devices, and high-single digit constant currency growth
in ENT.
-
Pain Therapies fourth
quarter revenue of $342 million increased 3.0 percent as reported
or 5.4 percent on a constant currency basis. The division had
high-single digit constant currency growth in Targeted Drug
Delivery, and mid-single digit constant currency growth in Pain
Stimulation on the continued strength of the Intellis(TM)
platform.
Diabetes Group
The Diabetes Group includes the Advanced Insulin Management (AIM)
and Emerging Technologies divisions. Diabetes Group fiscal year
2019 revenue of $2.391 billion increased 11.7 percent as reported
and 13.4 percent on a constant currency basis. Diabetes Group
fourth quarter revenue of $626 million decreased 2.9 percent as
reported or increased 0.6 percent on a constant currency basis.
Despite facing more difficult comparisons on pump sales given the
backlog of patient orders that the company cleared in the prior
year, revenue increased 2.6 percent versus the prior quarter as
reported.
-
Advanced Insulin Management
fourth quarter revenue decreased low-single digits constant
currency. Strong, mid-teens growth in international markets, driven
by the ongoing launch of the MiniMed(TM) 670G hybrid closed loop
insulin pump system with the Guardian(TM) Sensor 3, was offset by
difficult comparisons and increased competition in the U.S. Global
adoption of sensor-augmented insulin pump systems has resulted in
strong sensor attachment rates, with integrated CGM sales growing
in the high-teens on a constant currency basis.
-
Emerging Technologies
fourth quarter revenue grew in the low-sixties on a constant
currency basis, driven by the ongoing launch of the Guardian(TM)
Connect CGM system with Sugar.IQ(TM) personal diabetes assistant,
which grew triple digits for the fourth consecutive quarter.
Guidance
The company today issued its fiscal year 2020 revenue and EPS
growth guidance.
The company expects revenue growth in its fiscal
year 2020 to approximate 4.0 percent on an organic basis. If
current exchange rates hold, revenue growth in fiscal year 2020
would be negatively affected by 1.0 to 1.5 percent.
In fiscal year 2020, the company expects diluted
non-GAAP EPS in the range of $5.44 to $5.50, including an estimated
10 cent negative impact from foreign exchange based on current
rates.
"The company continues to make significant
progress on our pipeline," said Ishrak. "We expect our revenue
growth to accelerate over the course of fiscal year 2020 and into
fiscal year 2021, driven by the anniversary of recent headwinds,
combined with a series of major product launches over the next 12
months."
Webcast Information
Medtronic will host a webcast today, May 23, at 8:00 a.m. EDT (7:00
a.m. CDT) to provide information about its businesses for the
public, analysts, and news media. This quarterly webcast can be
accessed by clicking on the Investor Events link at
investorrelations.medtronic.com and this earnings release will be
archived at newsroom.medtronic.com. Medtronic will be live tweeting
during the webcast on its Newsroom Twitter account, @Medtronic.
Within 24 hours of the webcast, a replay of the webcast and
transcript of the company's prepared remarks will be available by
clicking on the Investor Events link at
investorrelations.medtronic.com.
Financial Schedules
To view the fourth quarter and fiscal year 2019 financial schedules
and non-GAAP reconciliations, click here. To view the fourth
quarter and fiscal year 2019 earnings presentation, click here.
Both documents can also be accessed by visiting
newsroom.medtronic.com.
About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is among the world's largest medical technology, services
and solutions companies - alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 90,000 people worldwide, serving physicians,
hospitals and patients in more than 150 countries. The company is
focused on collaborating with stakeholders around the world to take
healthcare Further, Together.
FORWARD LOOKING
STATEMENTS
This press release contains forward-looking
statements, which are subject to risks and uncertainties, including
those described in Medtronic's periodic reports and other filings
with the U.S. Securities and Exchange Commission (the "SEC").
Anticipated results only reflect information available to Medtronic
at this time and may differ from actual results. Medtronic does not
undertake to update its forward-looking statements or any of the
information contained in this press release. Certain information in
this press release includes calculations or figures that have been
prepared internally and have not been reviewed or audited by our
independent registered public accounting firm, including but not
limited to, certain information in the financial schedules
accompanying this press release. Use of different methods for
preparing, calculating or presenting information may lead to
differences and such differences may be material.
NON-GAAP FINANCIAL
MEASURES
This press release contains financial measures and
guidance, including adjusted net income and adjusted diluted EPS,
which are considered "non-GAAP" financial measures under applicable
SEC rules and regulations. References to quarterly figures
increasing, decreasing or remaining flat are in comparison to the
fourth quarter of fiscal year 2018, and references to annual
figures increasing or decreasing are in comparison to fiscal year
2018.
Medtronic management believes
that non-GAAP financial measures provide information useful to
investors in understanding the company's underlying operational
performance and trends and to facilitate comparisons with the
performance of other companies in the med tech industry. Non-GAAP
net income and diluted EPS exclude the effect of certain charges or
gains that contribute to or reduce earnings but that result from
transactions or events that management believes may or may not
recur with similar materiality or impact to operations in future
periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP
financial measures to facilitate management's review of the
operational performance of the company and as a basis for strategic
planning. Non-GAAP financial measures should be considered
supplemental to and not a substitute for financial information
prepared in accordance with U.S. generally accepted accounting
principles (GAAP), and investors are cautioned that Medtronic may
calculate non-GAAP financial measures in a way that is different
from other companies. Management strongly encourages investors to
review the company's consolidated financial statements and publicly
filed reports in their entirety. Reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures are included in the financial schedules accompanying this
press release.
Medtronic calculates
forward-looking non-GAAP financial measures based on internal
forecasts that omit certain amounts that would be included in GAAP
financial measures. For instance, forward-looking organic revenue
growth guidance excludes the impact of foreign currency
fluctuations, as well as material acquisitions or divestitures.
Forward-looking diluted non-GAAP EPS guidance also excludes other
potential charges or gains that would be recorded as Non-GAAP
Adjustments to earnings during the fiscal year. Medtronic does not
attempt to provide reconciliations of forward-looking non-GAAP EPS
guidance to projected GAAP EPS guidance because the combined impact
and timing of recognition of these potential charges or gains is
inherently uncertain and difficult to predict and is unavailable
without unreasonable efforts. In addition, the company believes
such reconciliations would imply a degree of precision and
certainty that could be confusing to investors. Such items could
have a substantial impact on GAAP measures of financial
performance.
-end-
View Fourth Quarter and FY19 Financial Schedules
& Non-GAAP Reconciliations
View Fourth Quarter and FY19 Earnings Presentation
Contacts:
Francesca DeMartino
Public Relations
+1-763-505-2029
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medtronic plc via Globenewswire
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