Medtronic reported fourth quarter revenue dropped 26 percent during the pandemic, hitting $6 billion. Full year earnings were in line with the guidance the company provided on April 21 to account for losses due to the postponement or cancellation of elective procedures around the world.
Six things to know:
1. Medtronic's restorative therapy group, which includes spine, pain and brain divisions, reported a 5.6 percent drop in fiscal year 2020 revenue to $7.725 billion. Fourth quarter revenue was down 33 percent to nearly $1.5 billion. The fourth quarter decline reflects the impact of COVID-19.
2. Titan Spine contributed $15 million to the company's fourth quarter revenue as part of the Medtronic's Restorative Therapies Group.
3. The overall spine revenue was down 31 percent in the fourth quarter to $480 million. Core Spine revenue dropped by a percentage in the high 20s in the U.S. and internationally.
4. Bone morphogenetic protein sales were down by a percentage in the high 30s. Pain therapies fourth quarter revenue was down $198 million, a 42 percent drop.
5. Neurosurgery revenue dropped by a percentage in the high 20s.
6. Medtronic did not provide guidance for future financial results due to the pandemic. The company did report a cash dividend for the first quarter of the 2021 fiscal year on May 20, raising the quarterly amount to 58 cents per share. Annually, this dividend would jump from $2.16 per share to $2.32 per share. The company returned $3.6 billion to shareholders in the 2020 fiscal year.
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