Medtronic plc (MDT – Free Report) reported third-quarter fiscal 2018 adjusted earnings per share (EPS) of $1.17, beating the Zacks Consensus Estimate by a penny. Earnings rose 4.5% year over year. 

Adjustments in the quarter primarily included the impact of restructuring charges, intangible asset amortization, divestiture-related items and acquisition-related items. After adjusting for unfavorable foreign exchange impact of a penny, adjusted EPS was $1.18.

Without these adjustments, the company’s reported a net loss of $1.03 per share, compared to 59 cents in the previous year. This included a $2.2-billion net tax expense related to the U.S. tax reform.

Total Revenues

Worldwide revenues in the reported quarter grossed $7.37 billion, up 7% on a constant exchange rate or CER basis (up 1.2% on a reported basis). The top line surpassed the Zacks Consensus Estimate of $7.20 billion. Foreign currency fluctuation favorably impacted Medtronic’s third-quarter revenues by $177 million.

In the quarter under review, U.S. sales (53.1% of total revenues) fell 4.9% year over year (up 6% at CER) to $3.91 billion. Non-U.S. developed market revenues totaled $2.36 billion (32% of total revenues), reflecting a 5% increase at CER (up 7.8% as reported). Emerging market revenues (14.9% of total revenues) amounted to $1.10 billion, up 12% at CER (up 11.8% as reported).

Medtronic plc Price, Consensus and EPS Surprise

Medtronic plc Price, Consensus and EPS Surprise | Medtronic plc Quote

Segment Details

The company currently generates revenues from four major groups, viz. Cardiac & Vascular Group (CVG), Minimally Invasive Therapies Group (MITG), Restorative Therapies Group (RTG) and Diabetes Group.

CVG comprises Cardiac Rhythm & Heart Failure (CRHF), Coronary & Structural Heart (CSH) and Aortic & Peripheral Vascular divisions (APV). MITG now includes the Surgical Innovations (SI) and the Respiratory, Gastrointestinal & Renal (RGR) divisions after the divestiture of Patient Care, Deep Vein Thrombosis (Compression), and Nutritional Insufficiency (Enteral Feeding) businesses. RTG comprises the Spine, Brain Therapies, Specialty Therapies and Pain Therapies segments, while the Diabetes Group incorporates the Intensive Insulin Management (IIM), Non-Intensive Diabetes Therapies (NDT), and Diabetes Service & Solutions (DSS) divisions.