Medtronic's Q3 revenue up 5%, spine revenue growth strongest in 7+ years: 7 key notes

Spinal Tech

Medtronic released its third quarter fiscal year 2017 financial report, with revenue increased 5 percent over the same period last year.

Here are seven things to know:

 

1. Medtronic's third quarter revenue hit $7.2 billion, a 5 percent increase over the same period last year. The GAAP net income was $821 million, a 25 percent decrease.

 

2. Revenue in the United States represented 56 percent of the company's total revenue and increased 4 percent over the same period last year. The U.S. revenue for the third quarter was $4.1 billion; non-U.S. revenue was about $2.2 billion, representing 30 percent of the company's revenue. Emerging markets represented the remaining 14 percent of company revenue, hitting $984 million.

 

3. Medtronic's spine revenue increased 3 percent to $657 million for the quarter. The spine revenue experienced its strongest quarterly year-over-year growth in more than seven years.

 

4. The Core Spine group's revenue grew in the low single-digits as the company focused on a "speed-to-scale" new product launches, which continues to drive results.

 

5. Medtronic's BMP revenue was also up, growing in the low-single digits on a constant currency basis.

 

6. Pain therapies revenue dropped 3 percent to $272 million after the company divested the division's drug business during the third quarter of the previous year. There were declines in spinal cord stimulation revenue as the company faced competitive pressures. The interventional business revenue grew by the high single digits.

 

7. The company expects 2017 full year free cash flow in the range of $5 billion to $6 billion.

 

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