Medtronic Reports Fourth Quarter and Fiscal Year 2017 Financial Results
(Thomson Reuters ONE) -
* Q4 Revenue of $7.9 Billion Grew 5% as Reported; 5% at Constant Currency
* Q4 GAAP Diluted EPS of $0.84; Q4 Non-GAAP Diluted EPS of $1.33
* FY17 Revenue of $29.7 Billion Grew 3% as Reported; Approximately 5% on a
Constant Currency, Constant Week Basis
* FY17 GAAP Diluted EPS of $2.89; FY17 Non-GAAP Diluted EPS of $4.60
* FY17 Cash Flow from Operations of $6.9 Billion; FY17 Free Cash Flow of $5.6
Billion
DUBLIN - May 25, 2107 - Medtronic plc (NYSE: MDT) today announced financial
results for its fourth quarter and fiscal year 2017, which ended April 28, 2017.
The company reported fourth quarter worldwide revenue of $7.916 billion,
compared to the $7.567 billion reported in the fourth quarter of fiscal year
2016, an increase of 5 percent on both a reported and constant currency basis.
Foreign currency translation had a negative $37 million impact on fourth quarter
revenue. As reported, fourth quarter GAAP net income and diluted earnings per
share (EPS) were $1.163 billion and $0.84, respectively. As detailed in the
financial schedules included through the link at the end of this release, fourth
quarter non-GAAP net income and diluted earnings per share (EPS) were $1.836
billion and $1.33, an increase of 2 percent and 5 percent, respectively.
Fourth quarter U.S. revenue of $4.403 billion represented 56 percent of company
revenue and increased 4 percent. Non-U.S. developed market revenue of $2.452
billion represented 31 percent of company revenue and increased 2 percent, or 4
percent on a constant currency basis. Emerging market revenue of $1.061 billion
represented 13 percent of company revenue and increased 11 percent, or 10
percent on a constant currency basis.
Medtronic's fiscal year 2017 revenue of $29.710 billion increased 3 percent, or
approximately 5 percent on a constant currency, constant week basis. Foreign
currency translation had a negative $34 million impact on fiscal year 2017
revenue. The first quarter of fiscal year 2017 contained 13 weeks, one less week
than the first quarter of fiscal year 2016. The extra week occurs every six
years as a result of the company's 52-53 week fiscal year calendar. While it is
difficult to calculate an exact impact from the extra week, the company
estimates that it resulted in an approximate $450 million benefit to revenue and
$0.08 to $0.10 benefit to non-GAAP diluted earnings per share (EPS) in the first
quarter of the prior fiscal year. As reported, fiscal year 2017 net earnings
were $4.028 billion or $2.89 per diluted share. As detailed in the link at the
end of this release, fiscal year 2017 non-GAAP earnings and diluted EPS were
$6.395 billion and $4.60, representing increases of approximately 8 to 9 percent
and approximately 11 to 12 percent, respectively, on a constant currency,
constant week basis.
"Our fourth quarter results were a strong finish to the fiscal year, with
balanced, diversified growth across our groups and regions," said Omar Ishrak,
Medtronic chairman and chief executive officer. "Fiscal year 2017 was a solid
year overall for Medtronic. We delivered record revenue, made progress in each
of our growth strategies, executed on our Covidien cost synergy commitments,
generated strong free cash flow growth, and deployed our capital in line with
our stated priorities, balancing the return of cash to our shareholders together
with disciplined reinvestment in our businesses."
Cardiac and Vascular Group
The Cardiac and Vascular Group (CVG) includes the Cardiac Rhythm & Heart Failure
(CRHF), Coronary & Structural Heart (CSH), and Aortic & Peripheral Vascular
(APV) divisions. CVG worldwide fourth quarter revenue of $2.848 billion
increased 4 percent, or 5 percent on a constant currency basis. CVG revenue
performance was driven by strong, balanced growth across all three divisions.
* CRHF fourth quarter revenue of $1.544 billion increased 3 percent, or 4
percent on a constant currency basis, with mid-single digit growth on a
constant currency basis in Arrhythmia Management driven by the continued
global adoption of the Reveal LINQ® insertable cardiac monitor, as well as
high-teens growth in AF Solutions on a constant currency basis. Heart
Failure growth was driven in part by the company's first quarter acquisition
of HeartWare International, Inc.
* CSH fourth quarter revenue of $847 million increased 4 percent on both a
reported and constant currency basis, led by mid-thirties growth on a
constant currency basis in transcatheter aortic valves as a result of strong
customer adoption of the CoreValve® Evolut® R platform, including the 34mm
launch in the U.S. and Europe.
* APV fourth quarter revenue of $457 million increased 5 percent, or 6 percent
on a constant currency basis, driven by mid-single digit growth in Aortic
and high-single digit growth in Peripheral, both on a constant currency
basis. Aortic growth was led by the continued strength of the Endurant® IIs
aortic stent graft and solid adoption of the Heli-FX® EndoAnchor® System.
Peripheral was driven by low-twenties growth of the clinically
differentiated IN.PACT® Admiral® drug-coated balloon and high-single digit
growth in atherectomy.
Minimally Invasive Therapies Group
The Minimally Invasive Therapies Group (MITG) includes the Surgical Solutions
and the Patient Monitoring & Recovery (PMR) divisions. MITG worldwide fourth
quarter revenue of $2.605 billion increased 6 percent on both a reported and
constant currency basis. MITG had a strong quarter with high-single digit growth
in Surgical Solutions and mid-single digit growth in PMR.
* Surgical Solutions fourth quarter revenue of $1.459 billion increased 7
percent, or 8 percent on a constant currency basis, driven by new products
in Advanced Stapling and Advanced Energy, including endo stapling specialty
reloads, the Valleylab(TM) FT10 energy platform, and LigaSure(TM) vessel
sealing instruments. The division also benefitted from the second quarter
acquisition of Smith & Nephew's gynecology business.
* PMR fourth quarter revenue of $1.146 billion increased 4 percent on both a
reported and constant currency basis, with the above market growth driven by
the re-commercialization of the Puritan Bennett(TM) 980 ventilator and the
Capnostream(TM) 20 capnography monitor, growth in capnography disposables,
as well as strength in Nellcor(TM) pulse oximetry products.
Restorative Therapies Group
The Restorative Therapies Group (RTG) includes the Spine, Brain Therapies,
Specialty Therapies, and Pain Therapies divisions. RTG worldwide fourth quarter
revenue of $1.951 billion increased 4 percent, or 5 percent on a constant
currency basis. Group results were driven by high-single digit growth in Brain
Therapies and Specialty Therapies and low-single digit growth in Spine,
offsetting declines in Pain Therapies.
* Spine fourth quarter revenue of $676 million increased 3 percent on both a
reported and constant currency basis, demonstrating sustained improvement.
Bone Morphogenetic Protein (BMP) grew in the low-double digits on a constant
currency basis. Core Spine grew in the low-single digits on a constant
currency basis, driven in part by the focus on "Speed-to-Scale" new product
launches and strength in Other Biologics.
* Brain Therapies revenue of $585 million increased 9 percent on both a
reported and constant currency basis, with strength in Neurovascular and
Neurosurgery. Neurovascular grew in the mid-teens on a constant currency
basis, driven by strength in sales of the Axium(TM) Prime Extra Soft
detachable coils and Solitaire(TM) revascularization devices. Neurosurgery
grew in the low-double digits on a constant currency basis, driven by strong
sales of the O-arm® O2 surgical imaging system. Brain Modulation grew in the
low-single digits on a constant currency basis on sales of the company's
market-leading MR conditional Activa® DBS portfolio.
* Specialty Therapies revenue of $396 million increased 7 percent on both a
reported and constant currency basis. All three businesses contributed to
growth, with Advanced Energy growing in the low-double digits, Pelvic Health
growing in the high-single digits, and ENT growing in the mid-single digits,
all on a constant currency basis.
* Pain Therapies revenue of $294 million decreased 2 percent on both a
reported and constant currency basis. Pain Therapies had mid-single digit
constant currency declines in Spinal Cord Stimulation, as the business faced
competitive pressures, partially offset by low-single digit constant
currency growth in Drug Pumps and Interventional.
Diabetes Group
The Diabetes Group includes the Intensive Insulin Management (IIM), Diabetes
Service & Solutions (DSS), and Non-Intensive Diabetes Therapies (NDT) divisions.
Diabetes Group worldwide fourth quarter revenue of $512 million increased 3
percent, or 4 percent on a constant currency basis.
* IIM grew in the high-single digits on a constant currency basis, with low-
double digit growth in the U.S. driven by strong interest in the MiniMed®
630G system and the Priority Access Program for the MiniMed® 670G system,
the world's first hybrid closed loop insulin delivery system. In addition,
the division delivered high-single digit constant currency growth in
international markets due to strong growth of continuous glucose monitor
(CGM) sensors and the continued strength of the MiniMed® 640G system.
* NDT declined in the low-single digits on a constant currency basis. The
division grew in the mid-single digits in the U.S. on sales to primary care
physicians of the iPro®2 Professional CGM technology with Pattern Snapshot.
* DSS declined in the low-single digits on a constant currency basis. While
results were flat on a constant currency basis in international markets, the
business did see strong adoption of the Guardian® Connect mobile CGM system.
In the U.S., the division had mid-single digit declines due to more
stringent payer requirements and lower order sizes.
Guidance
The company today provided its initial fiscal year 2018 revenue and EPS growth
guidance.
In fiscal year 2018, the company expects constant currency revenue growth to be
in the range of 4 to 5 percent. While the impact of foreign currency is fluid,
if current exchange rates remain similar for the remainder of the fiscal year,
the company's revenue would be positively affected by approximately $75 million
to $175 million for the fiscal year, including an approximate negative $10 to
negative $60 million impact in the first fiscal quarter.
In fiscal year 2018, the company expects diluted non-GAAP EPS growth to be in
the range of 9 to 10 percent on a constant currency basis. Assuming current
exchange rates remain similar for the rest of the year, the company's non-GAAP
EPS would be negatively affected by approximately $0.05 to $0.10, including an
approximate $0.03 to $0.05 impact in the first fiscal quarter.
The company reiterated its long-term expectation of mid-single digit revenue
growth and double digit EPS growth, both on a constant currency basis. In
addition, the company noted that the fiscal year 2018 outlook and guidance does
not include the impact of the previously announced divestiture of a portion of
its Patient Monitoring and Recovery division to Cardinal Health, which the
company continues to expect to close in the second fiscal quarter. The company
intends to update its guidance upon close of the transaction.
"We are creating distinct competitive advantages and capitalizing on the long-
term trends in healthcare: namely, the desire to improve clinical outcomes; the
growing demand for expanded access to care; and the optimization of cost and
efficiency within healthcare systems. These trends, along with an aging
population in most countries, produce secular growth tailwinds that we believe
represent sustainable, long-term opportunities for Medtronic," said Ishrak. "As
we look forward, we have a number of catalysts that make us optimistic about our
ability to deliver on our commitments and expand patient access around the world
to our products and services. Our leadership team and employees continue to
focus on driving excellence and impact in all that we do, and we look forward to
the fiscal year ahead."
Webcast Information
Medtronic will host a webcast today, May 25, 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 our Newsroom Twitter account, (at)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 financial schedules and non-GAAP reconciliations,
click here. To view the fourth quarter 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 88,000 people worldwide, serving
physicians, hospitals and patients in approximately 160 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 related to product and
service growth drivers, market position and opportunities, the transforming
healthcare environment, strategies for and sustainability of growth, benefits
from collaborations and acquisitions, availability of and plans for cash, the
creation of shareholder value and shareholder returns, product launches, and
Medtronic's future results of operations, which are subject to risks and
uncertainties, such as competitive factors, difficulties and delays inherent in
the development, manufacturing, marketing and sale of medical products,
challenges with respect to third-party collaborations and integration of
acquired businesses, effectiveness of growth and restructuring strategies,
challenges relating to our worldwide operations, challenges or unforeseen risks
in implementing our growth strategies, government regulation, fluctuations in
foreign currency exchange rates, future revenue and earnings growth, and general
economic conditions and other risks and uncertainties 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 free cash
flow figures (defined as operating cash flows less property, plant and equipment
additions), revenue and growth rates on a constant currency and constant week
basis, net income, and diluted EPS, all of which are considered "non-GAAP"
financial measures under applicable SEC rules and regulations. Unless otherwise
noted, all revenue amounts given in this press release are stated in accordance
with U.S. generally accepted accounting principles (GAAP). References to
quarterly or annual figures increasing or decreasing are in comparison to the
fourth quarter of fiscal year 2016 and full fiscal year 2016, respectively.
Medtronic management believes that in order to properly understand its short-
term and long-term financial trends, including period over period comparisons of
the company's operations, investors may find it useful to 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 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 revenue growth and EPS
projections exclude the impact of foreign currency exchange fluctuations.
Forward-looking 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, such as amortization of intangible assets and acquisition-related,
certain tax and litigation, and restructuring charges or gains. 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, we believe 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 FY17 Fourth Quarter Financial Schedules & Non-GAAP Reconciliations
View FY17 Fourth Quarter Earnings Presentation
Contacts:
Fernando Vivanco
Public Relations
+1-763-505-3780
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions 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
Unternehmensinformation / Kurzprofil:
Datum: 25.05.2017 - 12:45 Uhr
Sprache: Deutsch
News-ID 544623
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