Medtronic 2Q Profit, Revenue Fall Amid Decline in Medical Procedures
November 24 2020 - 7:33AM
Dow Jones News
By Dave Sebastian
Medtronic PLC said its profit fell for the second quarter as
revenue slid due to continued declines in medical procedures amid
the Covid-19 pandemic.
The medical-technology company, which provides contracting
services, on Tuesday posted a profit of $489 million, or 36 cents a
share, compared with a profit of $1.36 billion, or $1.01 a share,
in the same three-month period a year earlier.
Adjusted earnings were $1.02 a share. Analysts polled by FactSet
were expecting adjusted earnings of 80 cents a share.
Revenue was $7.65 billion, down 0.8% from the year-ago period.
Analysts were looking for $7.1 billion. Adjusting for the $59
million benefit of foreign-currency translation, revenue fell 1.5%.
U.S. revenue, which makes up 53% of total revenue, fell 2% to $4.05
billion. Non-U.S. developed market revenue, which makes up 32% of
total revenue, rose 6% to $2.45 billion. Emerging markets revenue
fell 9% to $1.15 billion.
Revenue in the company's cardiac and vascular group fell 4.6% to
$2.73 billion, and restorative therapies group revenue fell 2.3% to
$2.06 billion. Minimally invasive therapies group revenue rose 6.7%
to $2.29 billion, while diabetes group revenue fell 3.7% to $574
million.
"We're seeing a faster-than-expected recovery and approaching
year-over-year growth. Our revenue growth is improving, our
pipeline is advancing, and we're gaining share in an increasing
number of businesses," Chief Executive Geoff Martha said.
The company said it isn't providing annual or quarterly guidance
due to Covid-19 uncertainty.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
November 24, 2020 07:18 ET (12:18 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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