Medtronic's Q3 revenue up 6% to $6.9B; Spine revenue drops 2%: 8 things to know

Written by Laura Dyrda | March 01, 2016 | Print  |

Medtronic's revenues were up in the third quarter of 2016 as the company's Covidien acquisition begins to have a bigger affect.

Here are eight things to know about the financial report:

 

1. Medtronic reported a 6 percent revenue growth to $6.9 billion. Foreign currency translation had a negative $344 million impact on revenue.

 

2. The United States revenue jumped 4 percent over the same period last year, reaching $3.9 billion. The United States represents 57 percent of the company's overall revenue.

 

3. The non-U.S. developed market revenue is 30 percent of company revenue, increasing 5 percent over the same period last year and reaching $2 billion.

 

4. Emerging market revenue reached $903 million, representing 13 percent of the company revenue. The emerging market revenue was up 14 percent over the same quarter last year.

 

5. Medtronic's spine revenue declined 2 percent to $704 million. But there was double-digit BMP growth in the United States, which partially offset the low-single digit declines in Core Spine.

 

6. There was a loss of BMP sales in Europe as a result of a product hold. There were mid-single digit declines in interventional spine.

 

7. The neuromodulation revenue reached $465 million, a 1 percent decline over the same period last year. There was a growth in deep brain stimulation, offsetting declines in drug pumps and declines in pain stimulation where the company faces increased competition.

 

8. Medtronic expects revenue to grow 5 percent to 5.5 percent in the fourth quarter of the 2016 fiscal year. The company expects a negative impact from foreign currency in the fourth quarter of around $180 million to $220 million based on current exchange rates.

 

"As the one-year anniversary of the Covidien acquisition, we have preserved the growth of both companies and are realizing significant cost synergies and incremental revenue opportunities," said CEO Omar Ishrak. "Our combined company has a much more diversified revenue base, which together with our sustained execution, gives us increased confidence that consistent, mid-single digit revenue growth is achievable. Looking ahead, stakeholders are seeking not only to improve clinical outcomes and expand access to care, but also looking for solutions to optimize cost and efficiency."

 

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