Nonetheless, the company's aortic business lost market share and declined in the mid-twenties in the third quarter "due to supply constraints and continued pressure from our Valiant Navion recall and competitive launches," Martha said.ĭespite year-over-year market share loss, cardiac diagnostics gained share sequentially and revenue grew in the low-single digits in the quarter as procedure volumes were impacted by the omicron surge. In Medtronic's structural heart business, the company maintained its market share in transcatheter aortic valve replacement (TAVR), growing in the mid-teens in the third quarter. Martha noted that, "while that's down slightly from last quarter, due to some supply constraints and where certain businesses are in their product cycles, it is a significant improvement from where Medtronic was just 18 months ago." Overall, about 60% of the company's businesses held or won market share in the last calendar quarter. Medtronic's market share performance in the third quarter was mixed. "I'd be surprised if there weren't changes over the coming fiscal year, but I don't know yet if they'll be smaller or more significant."Īnalysts on Tuesday's earnings call asked the CEO what those changes may entail for the company. "We do expect that our markets, our customers and our industry are on the path to recovery," Martha told investors on Tuesday, noting that Medtronic is looking at its portfolio with a more critical eye. The industry's recovery is being hamstrung by ongoing challenges, including healthcare staffing shortages, inflation and global supply chain constraints. Medtronic and other medical device companies reporting financial results this earnings season continue to feel the negative impacts of the COVID-19 pandemic on elective procedures. Stifel analysts in a note said that Medtronic's results in its third quarter "are less bad than some may have feared" and that "with omicron daily infection rates receding, F4Q22 guidance seems achievable." "Our outlook assumes continued procedure volume recovery through March and April and we expect to be back to pre-COVID levels in most of our markets before the end of the fourth quarter," Parkhill added. CFO Karen Parkhill said that while the company is still seeing procedure volumes in the first few weeks of February curbed by omicron, they are beginning to improve. Looking ahead, Medtronic expects fourth-quarter organic revenue growth of approximately 5.5%, which is in line with current Wall Street consensus.Still, the CEO acknowledged that inflation, supply chain challenges and healthcare staffing shortages "will linger." 28, 2022, was slowed by the omicron variant surge in January, particularly in the U.S. Martha said the COVID-19 resurgence not only affected procedure volumes "but also created acute periods of worker absenteeism with our customers, suppliers and in our own operations and field teams." However, with coronavirus cases declining, Martha noted that available hospital and ICU capacity is increasing, and procedure volumes are picking up. CEO Geoff Martha told investors the company's revenue growth in the three-month period ended Jan.That missed analyst estimates by $110 million.
Medtronic on Tuesday announced it posted fiscal third-quarter revenue of $7.8 billion, an increase of 2% on an organic basis.
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