For the first quarter of fiscal year 2017, Medtronic’s revenue decreased 1 percent to $7.166 billion and its non-GAAP diluted earnings increased approximately 14 to 16 percent to $1.03 per share.
The company said in a news release that the first quarter of fiscal year 2017 ended on July 29, 2016 and contained 13 weeks, one less than the first quarter of fiscal year 2016. Medtronic estimated the extra week last year contributed to approximately $450 million in extra revenue and a $0.08 to $0.10 benefit to adjusted earnings.
Medtronic’s earnings beat analysts’ estimates of $1.01 per share, according to Thomson Reuters.
Revenue in the cardiac and vascular group decreased 2 percent to $2.52 billion, including $1.33 billion in the cardiac rhythm and heart failure division (a 3 percent decrease); $762 million in the coronary and structural heart division (a 3 percent decrease); and $422 million in the aortic and peripheral vascular division (a 2 percent increase).
Meanwhile, revenue in the minimally invasive therapies group decreased 1 percent to $2.42 billion, revenue in the restorative therapies group decreased 2 percent to $1.77 billion and revenue in the diabetes group increased 2 percent to $452 million.
Medtronic also reiterated its guidance for revenue and earnings per share. The company expects fiscal year 2017 revenue to increase 5 to 6 percent and its diluted non-GAAP earnings per share to increase 12 to 16 percent on a constant currency, constant weeks basis.
On Aug. 22, Medtronic completed its acquisition of HeartWare International for $1.1 billion in a transaction aimed at expanding the company’s heart failure portfolio. Medtronic expects the number of people with heart failure to grow from five million currently to eight million by 2030.
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.