Medtronic reported slight fiscal year 2015 first quarter revenue growth over the same period last year, with 6 percent revenue growth in the United States, on the heels of the company's announcement to acquire Covidien in June.
The company's profits topped analyst expectations, according to a Fox Business report, driven by strong sales in the United States. The company's U.S. spine device sales for the previously ubiquitous bone morphogenetic protein product Infuse have been rapidly declining in the United States over the past few years, but new acquisitions and product lines are bringing the company back on track.
Here are eight things to know about Medtronic's first quarter financial report:
1. Medtronic reported first quarter revenue at $4.2 billion, up from $4 billion in the same period last year. United States revenue reached $2.3 billion, a 6 percent increase and the highest revenue growth performance in the past five years. International sales made up 45 percent of Medtronic's worldwide revenue.
2. The company's emerging market revenue reached $539 million, an 11 percent increase over the same period last year. Emerging markets made up 13 percent of the company's revenue.
3. Spine revenue declined 3 percent on a constant currency and reported basis. The company's Core Spine and BMP declines offset growth in the interventional spine markets. The Core Spine revenue hit $552 million, a 2 percent decline.
4. The company hopes new product launches in the future will improve performance in the Core Spine line going forward.
5. Interventional spine review grew 4 percent to $81 million while BMP revenue continued its steady decline 11 percent to $110 million. However, the company did report seeing sequential stability in the underlying demand for BMP.
6. Medtronic reported profits fell 9 percent in the first quarter despite gains across most business lines, driven by one-time costs. Medtronic announced in June plans to acquire Covidien in a $43 billion transaction and relocate legal headquarters from Minnesota to Ireland, according to a Star Tribune report.
7. Medtronic CEO Omar Ishrak also reported today the company will continue paying significant taxes in the United States after closing the Covidien deal, expected by the end of this year. He reported the new corporate structure would "allow Medtronic to invest much more aggressively in the U.S.," according to a Reuters report.
8. Medtronic stock price opened at $63.94 today ahead of the financial report release. The 52-week range is $51.22 to $65.50 and the company has a market cap of $63.4 billion.
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