Interpreting financial results to gauge the health of our Industry used to be easier when manufacturers had dedicated CRM and other implantable divisions. Now it takes going into detailed financial statements to be able to separate the performance of implantables from other device-based therapies in the newly agglomerated divisions.
With that in mind, let’s look at Medtronic’s latest financial results (third quarter of fiscal year 2019, which ended January 25, 2019):
Overall results for Medtronic plc (NYSE: MDT):
- GAAP Diluted EPS of $0.94; Non-GAAP Diluted EPS of $1.29- Operating Margin of 20.4% Increased 90 bps; Non-GAAP Operating Margin of 29.2% Increased 140 bps
- Cash Flow from Operations of $4.9 Billion in First Nine Months vs. $3.6 Billion in Prior Year; Free Cash Flow of $4.1 Billion in First Nine Months vs. $2.9 Billion in Prior Year
- Company Raises FY19 EPS and Free Cash Flow Guidance
Cardiac Rhythm & Heart Failure
“Cardiac Rhythm & Heart Failure revenue of $1.397 billion decreased 4.1 percent as reported or 2.3 percent on a constant currency basis. Arrhythmia Management grew in the mid-single digits on a constant currency basis, driven by the continued uptake of the Micra® Transcatheter Pacing System and the Azure® wireless pacemaker. Arrhythmia Management results were also driven by mid-twenties growth of the TYRX® Absorbable Antibacterial Envelope and mid-teens growth in AF Solutions, both on a constant currency basis. This was offset by mid-teens declines in Heart Failure, including mid-forties declines in sales of left ventricular assist devices (LVADs). ”
Pain Therapies
“Pain Therapies revenue of $314 million increased 4.7 percent as reported or 5.7 percent on a constant currency basis. The division had high-single digit constant currency growth in Pain Stimulation on the continued strength of the Intellis(TM) platform for spinal cord stimulation. The division also had mid-single digit constant currency growth in Interventional Pain.”