Medtronic's second quarter financial report showed a 5 percent increase in worldwide revenue as the company prepares to finalize the Covidien acquisition.
"Our second quarter performance was strong and well balanced across our businesses and geographies," said Chairman and CEO Omar Ishrak. "Revenue growth was at the upper end of our full-year revenue outlook and within our mid-single digit baseline goal, reflecting the strong execution of our global organization."
Here are 10 key facts from Medtronic's financial report:
1. Revenue hit $4.3 billion, up 5 percent over the same period last year. United States revenue was up 5 percent to $2.4 billion; international revenue was also up 5 percent to $1.9 billion.
2. International sales accounted for 44 percent of Medtronic's worldwide revenue, and emerging market revenue jumped 12 percent to $554 million.
3. There was an 8 percent decrease in the GAAP net earnings—which were $828 million—over the same period last year. A $100 million pre-tax charitable cash donation drove the decrease. The donation was made to the Medtronic Foundation. Without this donation, as well as acquisition-related items, second quarter net earnings were up 4 percent to $952 million.
4. Worldwide sales in the restorative therapies group—which includes spine, neuromodulation and surgical technologies businesses—was up 4 percent to $1.6 billion. The revenue was driven by surgical technologies, neuromodulation and BMP.
5. Spine revenue was relatively flat—reaching $746 million. The core spine revenue was also flat, at $551 million while interventional spine revenue decreased 5 percent to $75 million.
6. Reversing the previous trend in declining revenue over the past few years, BMP revenue increased 9 percent to $120 million, "reflecting continued stability in underlying demand."
7. Medtronic expects 4 percent to 5 percent revenue growth on a constant currency basis for the full year, which is at the upper end of the previous 3 percent to 5 percent increase projections.
8. The company expects diluted non-GAAP EPS in the $4 to $4.10 range, which is an annual growth of 7 percent to 10 percent after adjusting for expected impact from foreign currency.
9. Mr. Ishrak said the company will continue to focus on three primary strategies heading into the future: therapy innovation, globalization and economic value.
10. The company is still on track to complete the Covidien acquisition in early 2015, despite setbacks with regulatory changes and shareholder lawsuits, which "will meaningfully accelerate all three [of the core] strategies, strengthen our long-term market competitiveness and drive further sustainability and consistency in our long-term financial performance," said Mr. Ishrak.