Medtronic’s Q2 Numbers Include Some Real Highlights

In short

Being one of the big guys, Medtronic always feels like something of a bellweather for the industry, so we try to follow its financials a little more than most. Last quarter, the company reported worldwide second quarter revenue of $4.095 billion, an increase of 5 percent on a constant currency basis.

Background

Second quarter international revenue of $1.806 billion increased 8 percent on a constant currency basis or 1 percent as reported. International sales accounted for 44 percent of Medtronic’s worldwide revenue in the quarter. Emerging market revenue of $464 million increased 18 percent on a constant currency basis and represented 11 percent of Company revenue. The full release can be found here, but we thought a few highlights might suffice:

By division

Cardiac and Vascular Group

Worldwide sales in the quarter of $2.137 billion, represent an increase of 6 percent on a constant currency basis, driven by solid growth in Coronary, Endovascular, Structural Heart, and AF Solutions, partially offset by declines in Pacing. Group international sales of $1.168 billion increased 7 percent on a constant currency basis or were flat as reported.

Restorative Therapies Group

The Restorative Therapies Group, including the Spine, Neuromodulation, Diabetes, and Surgical Technologies businesses had worldwide sales in the quarter of $1.958 billion, representing an increase of 4 percent on a constant currency basis. Group revenue was driven by growth in Surgical Technologies, Neuromodulation, and Diabetes, partially offset by declines in Spine. Group international sales of $638 million increased 9 percent on a constant currency basis or 3 percent as reported.

Company comments

“Our second quarter performance reflects the results of our ongoing focus to deliver consistent and dependable growth in a changing healthcare environment,” said Omar Ishrak, Medtronic chairman and chief executive officer. “Our growth was broad-based across several businesses and geographies, driven by continued stabilization of our end markets and the ongoing successful execution of new product launches.”

“We were encouraged by our balanced Q2 results, which outperformed the MedTech market. However, we remain focused on delivering this kind of performance consistently over an extended period of time. By implementing our growth strategies, we will position ourselves to be a leader in creating long-term value in healthcare.”

And for the future 

For fiscal year 2013, the company says it expects revenue growth in the range of 3 to 4 percent on a constant currency basis, which implies revenue growth of 2 to 4 percent on a constant currency basis for the second half of fiscal year 2013.

Source: Medtronic, Inc.