Medtronic Announces Preliminary Second Quarter Revenue
(Thomson Reuters ONE) -
* Preliminary Revenue of Approximately $7.1 Billion
* Company Updates Hurricane Maria Impact to Second Quarter Financial Results
* Company Reiterates Second Quarter EPS Expectations Excluding Hurricane Maria
Impact
* Second Quarter Financial Results to be Reported on November 21
DUBLIN - November 8, 2017 - Medtronic plc (NYSE: MDT) today announced its
preliminary revenue for its second quarter of fiscal year 2018, which ended
October 27, 2017. The company announced preliminary second quarter worldwide
revenue of approximately $7.050 billion, a decrease of 4 percent as reported,
with the decline driven by the company's divestiture of its Patient Care, Deep
Vein Thrombosis (Compression), and Nutritional Insufficiency businesses to
Cardinal Health that occurred at the beginning of the quarter. Second quarter
revenue increased 3 percent on a comparable, constant currency basis, which
adjusts for the divestiture and a $35 million positive impact from foreign
currency. Excluding the impact of Hurricane Maria, second quarter revenue growth
would have been 4 percent on a comparable, constant currency basis.
The company announced that the impact of Hurricane Maria was approximately $55
to $65 million to its second quarter revenue and is expected to be approximately
$0.03 to its second quarter non-GAAP earnings per share (EPS). The company was
able to limit the financial impact versus its original expectations provided on
October 6th due to the performance and resilience of its employees driving a
faster-than-anticipated recovery of its operations in Puerto Rico. As expected,
the majority of the impact was to its Minimally Invasive and Restorative
Therapies Groups in the United States.
On September 20th, Hurricane Maria devastated the island of Puerto Rico and
incapacitated Medtronic's four manufacturing plants. Within two weeks, on
October 2nd the company had substantially repaired its four Puerto Rico
manufacturing facilities and restarted limited production, with production
reaching 50 to 60 percent capacity by October 9th, and ramping to near pre-
hurricane capacity by October 18th.
Medtronic's primary focus has been to support the well-being of its more than
5,000 direct and contract employees on the island and restore its operations to
full productivity. The company has and continues to provide critical supplies
for its people in Puerto Rico, including water, food, temporary housing, medical
care, counseling services, child care, laundry facilities, and power generators.
Despite ongoing island infrastructure challenges, the company is now fully
prepared for sustained operations on the island. Medtronic took several actions
to restore its manufacturing operations, including implementing on-site and
redundant power generator systems; alternate technologies for telecommunication
and data connectivity; access to critical suppliers and production materials;
and shipping, transportation, and logistics capabilities. As a result, the
company was able to minimize the impact of the hurricane on both its supply to
customers as well as the company's second quarter financial results.
"The creativity, dedication, and persistence of our employees - both on and off
the island - in dealing with the aftermath of Hurricane Maria was simply
incredible. In particular, our employees in Puerto Rico made countless selfless
contributions, despite extensive impact to their personal lives, coming to work
every day to ensure customers and patients worldwide received our products,"
said Omar Ishrak, Medtronic chairman and chief executive officer. "Through the
efforts of our team, along with help from the local government and the U.S. FDA,
we were able to achieve extraordinary results with our Puerto Rico operations
over the month of October, well exceeding our initial expectations. I am
extremely proud of our passionate employees whose tireless dedication was
critical in restoring our operations."
Second Quarter EPS Guidance
Excluding the impact of Hurricane Maria, Medtronic today reiterated its
expectation that second quarter adjusted EPS would be flat to slightly up on a
comparable, constant currency basis from the prior year comparable EPS of $1.04.
The company expects a one cent positive impact to adjusted EPS from foreign
currency. Adjusted EPS guidance does not include any charges or gains that would
be reported as non-GAAP adjustments to earnings.
Webcast Information
Medtronic will report financial results for the second quarter of fiscal year
2018 and provide an outlook for its fiscal year on Tuesday, November 21, 2017.
This is one week earlier than the preliminary date previously provided by the
company. A news release will be issued at approximately 5:45 a.m. Central
Standard Time (CST) and will be available at http://newsroom.medtronic.com.
Medtronic will host a webcast at 7:00 a.m. CST to discuss its financial results.
The webcast can be accessed at http://investorrelations.medtronic.com on
November 21, 2017. Within 24 hours of the webcast, a replay and transcript of
the prepared remarks will be available by clicking on the Investor Events link
at http://investorrelations.medtronic.com.
Looking ahead, Medtronic plans to report its fiscal 2018 third and fourth
quarter financial results on Tuesday, February 20, 2018, and Thursday, May
24, 2018, respectively. Confirmation and additional details will be provided
closer to the specific quarterly earnings release date.
Non-GAAP Schedule
To view the Preliminary FY18 Second Quarter Non-GAAP Reconciliation schedule,
click here. The document 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 84,000 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, 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 schedule
accompanying this press release. Use of different methods for preparing,
calculating or presenting information may lead to differences and such
differences may be material. The revenue results presented in this news release
are preliminary and may change. There can be no assurance that the company's
actual results for the period presented in this news release will not differ
from the preliminary financial data presented in this news release and such
changes could be material. This preliminary financial data should not be viewed
as a substitute for full financial statements prepared in accordance with GAAP
and is not necessarily indicative of the results to be achieved for any future
periods.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures and guidance, including revenue
and growth rates on a comparable, constant currency basis, and diluted EPS, all
of which are considered "non-GAAP" financial measures under applicable SEC rules
and regulations. References to quarterly figures increasing or decreasing are in
comparison to the second quarter of fiscal year 2017.
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 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 schedule 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 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.
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 Preliminary FY18 Second Quarter Non-GAAP Reconciliation
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: 08.11.2017 - 22:45 Uhr
Sprache: Deutsch
News-ID 567323
Anzahl Zeichen: 12029
contact information:
Town:
Dublin
Kategorie:
Business News
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