-
Q4 Revenue of $7.6 Billion
Grew 4% as Reported; 6% at Constant Currency
-
Q4 GAAP Diluted EPS of
$0.78; Q4 Non-GAAP Diluted EPS of $1.27
-
FY16 Revenue of $28.8
Billion Grew 42% as Reported; 7% on a Comparable, Constant Currency
Basis Including the Q1 Extra Week Benefit
-
FY16 GAAP Diluted EPS of
$2.48; FY16 Non-GAAP Diluted EPS of $4.37
-
Company Sets Initial FY17
Revenue Growth Outlook and EPS Guidance
DUBLIN - May 31, 2016 -
Medtronic plc (NYSE: MDT) today announced financial results for its
fourth quarter and fiscal year 2016, which ended April 29,
2016.
The company reported fourth quarter worldwide
revenue of $7.567 billion, compared to the $7.304 billion reported
in the fourth quarter of fiscal year 2015, an increase of 4
percent, or 6 percent on a constant currency basis. Foreign
currency translation had a negative $179 million impact on fourth
quarter revenue. 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
$1.796 billion and $1.27, an increase of 7 percent and 9 percent,
respectively. As reported, fourth quarter GAAP net income and
diluted EPS were $1.104 billion and $0.78.
Fourth quarter U.S. revenue of $4.217 billion
represented 56 percent of company revenue and increased 4 percent.
Non-U.S. developed market revenue of $2.393 billion represented 31
percent of company revenue and increased 3 percent, or 6 percent on
a constant currency basis. Emerging market revenue of $957 million
represented 13 percent of company revenue and increased 4 percent,
or 15 percent on a constant currency basis.
Medtronic's fiscal year 2016 revenue of $28.833
billion increased 42 percent, or 7 percent on a comparable,
constant currency basis, which adjusts for the impact of foreign
currency translation and includes Covidien plc in the prior year
comparison, aligning Covidien's prior year monthly revenue to
Medtronic's fiscal quarters. 2016 revenue growth rates include the
benefit from the extra week in the first quarter. Foreign currency
translation had a negative $1.502 billion impact on fiscal year
2016 revenue. As detailed in the link at the end of this release,
fiscal year 2016 non-GAAP earnings and diluted EPS were $6.228
billion and $4.37, an increase of 31 percent and 2 percent,
respectively. As reported, fiscal year 2016 net earnings were
$3.538 billion or $2.48 per diluted share, an increase of 32
percent and 3 percent, respectively.
"Our organization once again successfully
delivered strong, balanced revenue growth across our groups and
geographic regions - growing above the market and exceeding our
revenue growth projections," said Omar Ishrak, Medtronic chairman
and chief executive officer. "This quarter caps a transformative
year for Medtronic, our first full year after closing the largest
ever MedTech acquisition. I am pleased with the execution and focus
of our teams around the world who delivered sustained revenue
growth and exceeded our Covidien cost synergy commitments."
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 $2.736 billion increased 5 percent, or 8
percent on a constant currency basis. CVG revenue performance was
driven by strong, balanced growth across all three divisions.
-
CRHF fourth quarter revenue of $1.492 billion
grew 7 percent, or 9 percent on a constant currency basis,
significantly outperforming the market on the strength of the
Amplia MRI(TM) and Compia MRI(TM) Quad CRT-D launches and ongoing
Evera MRI® ICD launch in
the U.S., adoption of the Micra® TPS pacemaker
in Europe, continued global adoption of the Reveal LINQ®
insertable cardiac monitor, and mid-thirties growth in AF Solutions
on a constant currency basis.
-
CSH fourth quarter revenue of $816 million
increased 3 percent, or 7 percent on a constant currency basis, led
by high-twenties growth on a constant currency basis in
transcatheter valves as a result of strong customer adoption of the
CoreValve®
Evolut® R. Coronary
grew in the low-single digits on a constant currency basis driven
by Resolute Onyx(TM) in Europe and emerging markets.
-
APV fourth quarter revenue of $428 million
increased 5 percent, or 8 percent on a constant currency basis,
driven by mid-single digit growth on a constant currency basis in
Aortic, led by the continued strength of the Endurant®
IIs aortic stent graft and solid adoption of the Heli-FX®
EndoAnchor® System, as
well as strong above-market growth of the clinically differentiated
IN.PACT®
Admiral® drug-coated
balloon, which holds the leading market position in the U.S. and
globally.
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 $2.460 billion
increased 3 percent, or 6 percent on a constant currency basis.
MITG had a strong quarter of above-market growth in Surgical
Solutions and low-single digit growth on a constant currency basis
in PMR.
-
Surgical Solutions fourth quarter revenue of
$1.358 billion increased 5 percent, or 9 percent on a constant
currency basis, driven by double-digit growth on a constant
currency basis in Advanced Energy and upper-single digit growth on
a constant currency basis in Advanced Stapling. Early Technologies
grew double-digits on a constant currency basis, led by strong
growth in GI Solutions.
-
PMR fourth quarter revenue of $1.102 billion
increased 1 percent, or 3 percent on a constant currency basis,
driven by growth in Renal Care Solutions from the recent
acquisition of Bellco, which offset negative revenue impacts
resulting from the product hold of the Puritan Bennett(TM) 980
ventilator and recall of the battery pack in the Capnostream(TM) 20
capnography monitor.
Restorative Therapies
Group
The Restorative Therapies Group (RTG) includes the Spine,
Neuromodulation, Surgical Technologies, and Neurovascular
divisions. RTG worldwide fourth quarter revenue of $1.875 billion
increased 1 percent, or 3 percent on a constant currency basis.
Group results were driven by strong growth in Neurovascular and
Surgical Technologies and improved results in Spine, which offset
low-single digit declines on a constant currency basis in
Neuromodulation.
-
Spine fourth quarter revenue of $737 million
declined 1 percent, or was flat on a constant currency basis. Core
Spine and Interventional Spine both delivered improved growth. BMP
declined in the low-single digits on a constant currency basis, as
mid-single digit growth in the U.S. only partially offset the
continued loss of BMP sales in Europe as a result of a product
hold.
-
Neuromodulation fourth quarter revenue of $494
million declined 5 percent, or declined 3 percent on a constant
currency basis. In Drug Pumps, the business was negatively affected
by challenges related to its April 2015 U.S. FDA consent decree as
well as by a recent divestiture of its intrathecal baclofen drug.
In addition, Pain Stim and Deep Brain Stimulation (DBS) declined,
driven by competitive challenges.
-
Surgical Technologies fourth quarter revenue of
$485 million increased 5 percent, or increased 7 percent on a
constant currency basis, with high-teens growth on a constant
currency basis in Advanced Energy and high-single digit growth on a
constant currency basis in Neurosurgery, offsetting low-single
digit declines on a constant currency basis in ENT.
-
Neurovascular fourth quarter revenue of $159
million increased 20 percent, or 23 percent on a constant currency
basis, driven by continued strong growth in stents and flow
diversion as a result of customer adoption of the company's
Solitaire(TM) FR revascularization device for the treatment of
ischemic stroke, as well as the Pipeline(TM) Flex device in the
U.S. and Japan and Pipeline(TM) Shield in Europe for the treatment
of intracranial aneurysms.
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 $496 million increased 6 percent, or 10 percent on a
constant currency basis. The group had strong, broad-based
performance across all three divisions.
-
IIM grew in the high-single digits on a constant
currency basis, driven by continued strong sales in Europe and Asia
Pacific of the MiniMed® 640G System
with the enhanced Enlite® sensor and
SmartGuard(TM) technology.
-
NDT grew over 230 percent on a constant currency
basis, led by strong U.S. sales of the iPro®2
Professional Continuous Glucose Monitor (CGM) technology with
Pattern Snapshot.
-
DSS grew in the high-single digits on a constant
currency basis as a result of solid growth of consumables, revenue
from the company's acquisition of Diabeter in Europe, and continued
strong growth of the MiniMed® Connect,
where now over 16,000 people with diabetes are using the product to
view their insulin pump and CGM information on a smartphone.
Revenue Outlook and EPS
Guidance
The company today provided its initial 2017 revenue outlook and EPS
guidance. The company's baseline goal is to consistently grow
revenue in the mid-single digits on a constant currency basis. In
fiscal year 2017, given current trends, the company expects
constant currency revenue growth to be in the upper-half of the
mid-single digit range, which is in the range of 5 to 6 percent and
excludes the estimated negative 150 basis point impact from the
extra selling week the company had in the first quarter of fiscal
year 2016. The company expects a negative impact from foreign
currency in fiscal year 2017 of approximately $25 to $75 million
based on current exchange rates.
In fiscal year 2017, the company expects non-GAAP
diluted EPS in the range of $4.60 to $4.70, which includes an
expected $0.20 to $0.25 negative foreign currency impact based on
current exchange rates. The company indicated this guidance would
imply diluted EPS growth in the range of 12 to 16 percent, after
adjusting for the estimated impact of foreign currency translation
and the extra selling week in the company's first quarter of fiscal
year 2016.
"As we enter our new fiscal year, we look forward
to delivering on our robust pipeline of products and services,
expanding our global reach to serve more patients, and partnering
with others around the world to develop new value-based business
models," said Ishrak. "We believe that Medtronic can play a
meaningful leadership role with others in healthcare that can lead
to better outcomes for patients, while improving overall healthcare
system performance."
Webcast Information
Medtronic will host a webcast today, May 31, 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, @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 of these 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 85,000 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 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, 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 strategies, challenges relating to our
worldwide operations, challenges or unforeseen risks in
implementing our growth strategies, government regulation,
fluctuations in foreign currency exchange rates, and general
economic conditions and other risks and uncertainties described in
Medtronic's periodic reports on file with the U.S. Securities and
Exchange Commission (the "SEC"). 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. 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. Earnings per share guidance excludes
any unusual charges or gains that might occur during the fiscal
year. The guidance provided only reflects information available to
Medtronic at this time.
NON-GAAP FINANCIAL
MEASURES
This press release contains financial measures and
guidance, including free cash flow figures, revenue and growth
rates on a comparable, constant currency basis, and constant
currency growth rates, 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 2015 and full
fiscal year 2015, 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 consider the
impact of aligning historical Covidien revenues to Medtronic's
fiscal calendar and 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.
-end-
View FY16 Fourth Quarter Financial Schedules &
Non-GAAP Reconciliations
View FY16 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 OMX Corporate Solutions on
behalf of NASDAQ OMX 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
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