By Trefis Team
Medical device manufacturer Medtronic (NYSE:MDT) posted strong revenue growth across the board in the first quarter of fiscal 2016 in its earnings release on September 3rd. [1] The company was hammered by currency headwinds as expected, but achieved good organic revenue growth across all divisions and geographies. Medtronic’s three-pronged growth strategy certainly seems to be working, as regular progress is being made in all the three tiers, namely therapy innovation, globalization and economic value. [2] The seamless integration of the Covidien acquisition and resurgence in procedures in the U.S. are expected to help Medtronic maintain its growth in the near future.
First quarter revenues expanded by 12% year on year on a comparable, constant currency basis and reached $7.3 billion. Growth was nearly evenly spread out across all of the company’s four divisions. However, the Patient Monitoring and Recovery, Spine, and Neuromodulation sub-segments underperformed relative to the rest of the company and achieved only single-digit revenue growth. Non-GAAP diluted EPS stood at $1.02 in the first quarter, which is an expansion of 400 basis points on a comparable constant currency basis. [3]
Medtronic does not provide quarterly guidance, but the company reiterated its guidance of 4-6% revenue growth on a constant currency comparable basis in fiscal 2016.
