Medtronic reported a slight decrease in overall fiscal year 2019 first quarter revenue with a small increase in spine revenue, but CEO Omar Ishrak remains optimistic about the future.
"We are excited about the growth opportunities in our end markets, and we are bullish about our competitive position," he said. "Our pipeline of innovation, invention and disruption has never been stronger. We are also putting the pieces in place to improve free cash flow conversion, creating additional capital that can be returned to shareholders and reinvested to drive future growth, all with a goal of creating long-term shareholder value."
Here are five things to know about Medtronic's first quarter:
1. The company reported a 0.1 percent decrease in worldwide revenue to $7.3 billion. U.S. revenue represented 52 percent of overall company revenue for the quarter and dropped 4.4 percent to $3.8 billion. Non-U.S. developed markets represented 33 percent of company revenue and was up 4 percent to $2.4 billion.
2. Spine revenue hit $652 million for the quarter, a 0.5 percent increase over the same period last year. The global spine revenue increased in the mid-single digits on a constant currency basis, driven by the company's Surgical Synergy strategy.
3. Medtronic's pain therapies revenue was up 16.7 percent to $314 million in the quarter, with low-twenties growth in the pain stimulation business due to the launch of its Intellis spinal cord stimulation platform.
4. Medtronic expects organic revenue to increase 4.5 percent to 5 percent over the next year. Assuming exchange rates hold for the remainder of the fiscal year, the company estimates 2019 revenue will be negatively affected by around $420 million to $520 million.
5. During the first quarter, the company reported a 14.8 percent increase in brain therapies revenue, hitting $599 million. The neurosurgery group was led by strong capital equipment sales of the O-arm 2 surgical imaging system, StealthStation S8 surgical navigation system and Mazor X robotic guidance system.