Medtronic PLC’s latest profit more than doubled as it moved farther out of the shadow of the pandemic-driven downturn this spring.
The medical-device maker, run out of Fridley but legally based in Dublin, Ireland, said Thursday it earned just over $2 billion in the three months ended April 30, about 2½ times what it made in the same period a year ago when the pandemic forced hospitals to call off elective procedures and scale back purchases of surgical equipment.
That profit amounted to $1.50 a share and came on revenue of $8.2 billion, numbers that beat analysts’ expectations slightly.
The February-through-April period wrapped up Medtronic’s fiscal year and, despite the pandemic, the company wound up with a 4% gain in sales during it.
But the pandemic took a toll on Medtronic’s bottom line. Non-GAAP earnings came to $6 billion, or $4.44 a diluted share, both decreases of 3%.
“We reported a strong end to our fiscal year, with our fourth quarter results demonstrating continued momentum,” CEO Geoff Martha said in a statement. “Our recovery improved throughout the [fourth] quarter, with most of our markets returning to near normal, pre-COVID growth rates.”
Martha said the launch of new products and changes to the company’s operating model positioned Medtronic to “drive accelerated revenue growth in the year ahead and over the long term.”
He also said the company “is nearing a full recovery” the pandemic. One of the signs of the emergence from the pandemic was Medtronic’s decision to offer financial guidance for the first time since COVID-19 locked down the economy. The company expects 9% revenue growth in fiscal 2022.
Fiscal year earnings per share should rise to $5.60 to $5.75 per share, starting with a per-share profit of around $1.31 to $1.34 for the fiscal first quarter that has just started, Chief Financial Officer Karen Parkhill told analysts and investors on an earnings call.
The company will spend more on research and development in the coming year than any in its history, investing heavily in surgical robotics and renal denervation, Martha told analysts. It made acqusitions of $1.2 billion in 2021 and will likely make purchases that exceed that number next year.
Medtronic continues to struggle for market share in one of its designated growth targets, the diabetes market. Revenue growth for diabetes products in fiscal 2022 is projected at 3% to 4%.
Jim Spencer • 202-662-7432