- Q3 Revenue of $7.8 Billion
Increased 0.8% as Reported and Decreased 1.0% Organically
- Q3 GAAP Diluted EPS of $0.94; Q3 Non-GAAP Diluted EPS of $1.29
DUBLIN, Feb. 23, 2021 /PRNewswire/ -- Medtronic plc
(NYSE:MDT) today announced financial results for its third quarter
of fiscal year 2021, which ended January 29,
2021.
The company reported third quarter worldwide revenue of
$7.775 billion, an increase of 0.8
percent as reported and a decrease of 1.0 percent on an organic
basis, which adjusts for the $136
million benefit of foreign currency translation. Unless
otherwise stated, all revenue growth rates in this press release
are stated on an organic basis, which adjusts for the impact of
foreign currency translation. There were no acquisitions made in
the last year that had a significant impact on the company's or any
individual segment's third quarter revenue growth.
As reported, third quarter GAAP net income and diluted earnings
per share (EPS) were $1.270 billion
and $0.94, respectively. As detailed
in the financial schedules included through the link at the end of
this release, third quarter non-GAAP net income and non-GAAP
diluted EPS were $1.753 billion and
$1.29, respectively, both decreases
of 10 percent. Adjusting for the negative 6
cent impact from foreign currency, third quarter non-GAAP
diluted EPS decreased 6 percent.
Third quarter U.S. revenue of $3.939
billion represented 51 percent of company revenue and
decreased 2 percent. Non-U.S. developed market revenue of
$2.522 billion represented 32 percent
of company revenue and increased 6 percent as reported and was flat
organic. Emerging Markets revenue of $1.314
billion represented 17 percent of company revenue and was
flat as reported and increased 1 percent organic.
"Our Q3 results reflect that our business is well on the way to
returning to growth, with sequential improvements in both revenue
and earnings, despite the impact of the COVID resurgence on
procedure volumes in late December and January. We're outperforming
our end markets, as new products are driving share gains in an
increasing number of our businesses," said Geoff Martha, Medtronic chairman and chief
executive officer. "Looking ahead, we're positioning ourselves for
long-term success as we implement our new operating model and
execute on a number of large opportunities to win share and create
and disrupt big markets."
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 third quarter revenue of $2.707 billion decreased 4.0 percent as reported
and 5.9 percent organic. CVG's revenue reflected the impact of the
COVID-19 resurgence on procedure volumes in the third quarter in
late December and January. CVG's organic performance reflected
mid-single digit declines in CRHF, high-single digit declines in
CSH, and mid-single digit declines in APV.
- Cardiac Rhythm & Heart Failure third quarter revenue
of $1.371 billion decreased 1.6
percent as reported and decreased 3.7 percent organic. Arrhythmia
Management revenue declined in the mid-single digits. This included
mid-sixties growth globally and mid-seventies growth in
the United States in Leadless
Pacemakers, on the continued global adoption of the company's
Micra™ transcatheter pacing systems. Heart Failure declined
low-single digits, as low-single digit declines in Cardiac
Resynchronization Therapy Pacemakers (CRT-Ps) and mid-twenties
declines in Left Ventricular Assist Devices (LVADs) were partially
offset by low-single digit growth in cardiac resynchronization
therapy defibrillators (CRT-Ds) from the recent launch of Cobalt™
and Crome™.
- Coronary & Structural Heart third quarter revenue of
$873 million decreased 7.9 percent as
reported and 9.5 percent organic, reflecting low-double digit
declines in drug-eluting stents (DES). The company experienced a
continued impact to DES sales in China as a result of the national tender
announcement in mid-October. While transcatheter aortic valves
(TAVR) declined mid-single digits versus the prior year, the
company estimates it gained share sequentially.
- Aortic, Peripheral & Venous third quarter revenue of
$463 million decreased 3.1 percent as
reported and 5.0 percent organic. Aortic declined in the low-single
digits, Peripheral declined in the mid-single digits, and Venous
declined in the low-double digits. Sales of the company's IN.PACT™
drug-coated balloons increased high-single digits.
Minimally Invasive Therapies Group
The Minimally
Invasive Therapies Group (MITG) includes the Surgical Innovations
(SI) and the Respiratory, Gastrointestinal & Renal (RGR)
divisions. MITG third quarter revenue of $2.313 billion increased 6.3 percent as reported
and 4.6 percent organic. MITG's revenue reflected the increased
demand for COVID-19 related diagnostics and therapies, offset by
the impact of the COVID-19 resurgence on procedure volumes in late
December and January. RGR's mid-twenties organic growth was
partially offset by SI's mid-single digit organic decline.
- Surgical Innovations third quarter revenue of
$1.423 billion decreased 3.5 percent
as reported and 5.3 percent organic. Advanced Surgical declined
mid-single digits and General Surgery declined in the high-single
digits, both reflecting the deceleration of worldwide surgical
procedure recovery due to the resurgence of the COVID-19
pandemic.
- Respiratory, Gastrointestinal & Renal third quarter
revenue of $890 million increased
26.8 percent as reported and 25.4 organic. Respiratory
Interventions increased mid-seventies organic, with sales of
ventilators increasing nearly three-fold to meet global demand as a
result of the COVID-19 pandemic. Patient Monitoring increased in
the low-double digits on strength of the company's Nellcor™ pulse
oximetry products.
Restorative Therapies Group
The Restorative Therapies
Group (RTG) includes the Cranial and Spinal Technologies, Specialty
Therapies, and Neuromodulation divisions. RTG third quarter revenue
of $2.126 billion increased 0.7
percent as reported and decreased 0.8 percent organic. RTG's
revenue reflected the impact of the COVID-19 resurgence on
procedure volumes in the third quarter in late December and
January, partially offset by growth from new products. RTG's
organic performance this quarter included mid-single-digit declines
in Cranial and Spinal Technologies and low-single digit organic
growth in Specialty Therapies and Neuromodulation.
- Cranial and Spinal Technologies third quarter revenue of
$1.081 billion decreased 3.2 percent
as reported and 4.5 percent organic, including mid-single digit
declines in Spine and low-single digit declines in Enabling
Technology. The company had solid sales of capital equipment in the
U.S., with sales growth in Mazor™ robotics, O-arm™ imaging, and
Midas-Rex™ powered surgical instruments.
- Specialty Therapies third quarter revenue of
$618 million increased 5.1 percent as
reported and 3.2 percent organic. Neurovascular increased in the
mid-single digits and Pelvic Health increased in the mid-teens,
partially offset by mid-single digit declines in ENT.
- Neuromodulation third quarter revenue of $426 million increased 4.9 percent as reported
and 3.4 percent organic, with new products driving low-single digit
growth in Pain Therapies and mid-single digit growth in DBS.
Diabetes Group
Diabetes Group third quarter revenue of
$630 million increased 3.3 percent as
reported and 0.8 percent organic. Diabetes Group revenue
performance reflected mid-single digit growth in durable pumps and
CGM due to the launch of MiniMed™ 780G in international markets and
the MiniMed™ 770G launch in the U.S.
Guidance
Given the uncertainty on near-term financial
results caused by the COVID-19 pandemic, the company is not
providing formal annual or quarterly financial guidance at this
time.
Webcast Information
Medtronic will host a webcast
today, February 23, at 8:00 a.m. EST (7:00 a.m.
CST) to provide information about its businesses for the
public, investors, 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 news.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.
Medtronic plans to report its fiscal year 2021 fourth quarter
results on May 27, 2021, and its
fiscal year 2022 first, second, and third quarter results on
August 24, 2021, November 23, 2021, and February 22, 2022, respectively. Confirmation and
additional details will be provided closer to the specific
event.
Financial Schedules
To view the third quarter
financial schedules and non-GAAP reconciliations, click
here. To view the third quarter earnings presentation, click
here. Both documents can also be accessed by visiting
news.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 within the meaning of the
Private Securities Litigation Reform Act of 1995, which are subject
to risks and uncertainties, including risks related to the impact
COVID-19 has had and is expected to continue to have on our
business, operations and production, as well as demand for our
offerings, and on our employees, medical professional and
healthcare system, communities in which we operate, and our
financial results and condition, competitive factors, difficulties
and delays inherent in the development, manufacturing, marketing
and sale of medical products, government regulation and general
economic conditions and other risks and uncertainties described in
the company's periodic reports on file with the U.S. Securities and
Exchange Commission including the most recent Annual Report on Form
10-K of the company, as filed with the U.S. Securities and Exchange
Commission. In some cases, you can identify these statements by
forward-looking words or expressions, such as "anticipate,"
"believe," "could," "estimate," "expect," "forecast," "intend,"
"looking ahead," "may," "plan," "possible," "potential," "project,"
"should," "going to," "will," and similar words or expressions, the
negative or plural of such words or expressions and other
comparable terminology. Actual results may differ materially from
anticipated results. Medtronic does not undertake to update its
forward-looking statements or any of the information contained in
this press release, including to reflect future events or
circumstances.
NON-GAAP FINANCIAL MEASURES
This press release
contains financial measures, including adjusted net income,
adjusted diluted EPS, and organic revenue, 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 third quarter of fiscal
year 2020.
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.
View Third Quarter Financial Schedules & Non-GAAP
Reconciliations
View Third Quarter Earnings Presentation
Contacts:
|
|
Erika
Winkels
|
Ryan
Weispfenning
|
Public
Relations
|
Investor
Relations
|
+1-763-526-8478
|
+1-763-505-4626
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/medtronic-reports-third-quarter-fiscal-2021-financial-results-301232961.html
SOURCE Medtronic plc