New product launches drive recovery in Medtronic fiscal Q2 sales, margins

 

• Medtronic (NYSE:MDT) FQ2 results:
• Revenues: $7,647M (-0.8%).
• Cardiac & Vascular Group revenues of $2.73B (-4.6%), compared to estimate $2.63B.
• Minimally Invasive Therapies Group revenues are $2.29B (+6.7%), vs. consensus of $2.01B.
• Restorative Therapies Group: $2.06B (-2.3%) compared to expectations of $1.87B; Diabetes Group: $574M (-3.7%) vs. forecast of $568.9M.
• Adjusted gross margin of 65.2% vs. estimate of 64.1%; Adjusted operating margin 22.3%, consensus 19.2%.
• Organic growth +1.5% vs. -8.4% consensus.
• Net Income: $489M (-64.1%); EPS: $0.36 (-64.4%); non-GAAP Net Income: $1,380M (-22.3%); non-GAAP EPS: $1.02 (-22.1%).
• CF Ops: $2,139M (-36.7%).
• "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," said Geoff Martha, CEO.
• Given COVID-19 uncertainty, the company is not providing formal annual or quarterly financial guidance at this time.
• https://seekingalpha.com/news/3638988-new-product-launches-drive-recovery-in-medtronic-fiscal-q2-sales-and-margins