Latest news with #medicaldevices
Yahoo
a day ago
- Business
- Yahoo
CooperCompanies Announces Second Quarter 2025 Results
SAN RAMON, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- CooperCompanies (Nasdaq: COO), a leading global medical device company, today announced financial results for its fiscal second quarter ended April 30, 2025. Revenue increased 6% year-over-year to $1,002.3 million. CooperVision (CVI) revenue up 5% to $669.6 million, and CooperSurgical (CSI) revenue up 8% to $332.7 million. GAAP diluted earnings per share (EPS) of $0.44, consistent with last year's second quarter. Non-GAAP diluted EPS of $0.96, up $0.11 or 14% from last year's second quarter. See "Reconciliation of Selected GAAP Results to Non-GAAP Results" below. Commenting on the results, Al White, CooperCompanies' President and CEO said, "This was another solid quarter driven by double-digit growth in CooperVision's daily silicone hydrogel portfolio and CooperSurgical's office and surgical portfolio. As we move forward, our teams remain focused on taking share, delivering leverage, launching products and completing capacity expansion projects." Second Quarter Operating Results Revenue of $1,002.3 million, up 6% from last year's second quarter, up 7% in constant currency, up 7% organically. Gross margin of 68% compared with 67% in last year's second quarter driven by efficiency gains and mix. On a non-GAAP basis, gross margin was 68%, up from 67% last year. Operating margin of 18% compared with 17% in last year's second quarter driven by stronger gross margins and targeted expense leverage. On a non-GAAP basis, operating margin was 25%, up from 24% last year. Interest expense of $24.2 million compared with $28.9 million in last year's second quarter driven by lower interest rates and lower average debt. On a non-GAAP basis, interest expense was $23.5 million, down from $27.5 million. Cash provided by operations of $96.2 million offset by capital expenditures of $78.1 million resulted in free cash flow of $18.1 million. Second Quarter CooperVision (CVI) Revenue Revenue of $669.6 million, up 5% from last year's second quarter, up 7% in constant currency, up 7% organically. Revenue by category: % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 Toric and multifocal $ 328.4 6% 1% 7% —% 7% Sphere, other 341.2 5% 1% 6% —% 6% Total $ 669.6 5% 2% 7% —% 7% Revenue by geography: % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 Americas $ 282.4 7% 1% 8% —% 8% EMEA 248.6 5% 1% 6% —% 6% Asia Pacific 138.6 3% 2% 5% —% 5% Total $ 669.6 5% 2% 7% —% 7% Second Quarter CooperSurgical (CSI) Revenue Revenue of $332.7 million, up 8% from last year's second quarter, up 9% in constant currency, up 7% organically. Revenue by category: % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 Office and surgical $ 205.8 13% —% 13% (3)% 10% Fertility 126.9 3% 1% 4% (2)% 2% Total $ 332.7 8% 1% 9% (2)% 7% Other During the second quarter of fiscal 2025, the company repurchased $40.6 million of common stock, roughly 537.2 thousand shares, under the existing share repurchase program at an average share price of $75.60. The program has $215.8 million of remaining availability. Fiscal Year 2025 Financial Guidance The Company updated its fiscal year 2025 financial guidance. Details are summarized as follows: Fiscal 2025 total revenue of $4,107 - $4,146 million (organic growth of 5% to 6%) CVI revenue of $2,759 - $2,786 million (organic growth of 6% to 7%) CSI revenue of $1,347 - $1,359 million (organic growth of 3.5% to 4.5%) Fiscal 2025 non-GAAP diluted EPS of $4.05 - $4.11 Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations. With respect to the Company's guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measure. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance. Reconciliation of Selected GAAP Results to Non-GAAP Results To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. To present constant currency revenue growth, current period revenue for entities reporting in currencies other than the United States dollar are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To present organic revenue growth, we excluded the effect of foreign currency fluctuations and the impact of any acquisitions, divestitures and discontinuations that occurred in the comparable period. We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. THE COOPER COMPANIES, INC. AND SUBSIDIARIES GAAP to Non-GAAP ReconciliationGross Margin, Operating Margin, and EPS Three Months Ended April 30, Six Months Ended April 30, (In millions) 2025 Margin % 2024 Margin % 2025 Margin % 2024 Margin % GAAP Gross Profit $ 679.1 68 % $ 631.2 67 % $ 1,339.3 68 % $ 1,255.0 67 % Acquisition and integration-related charges(1) 2.1 — % 0.4 — % 3.8 — % 1.2 — % Exit of business(2) — — % 0.4 — % — — % 0.5 — % Medical device regulations(3) 0.7 — % 0.7 — % 1.3 — % 1.7 — % Business optimization charges(4) — — % 1.7 — % — — % 3.3 — % Total 2.8 — % 3.2 — % 5.1 — % 6.7 — % Non-GAAP Gross Profit $ 681.9 68 % $ 634.4 67 % $ 1,344.4 68 % $ 1,261.7 67 % Three Months Ended April 30, Six Months Ended April 30, (In millions) 2025 Margin % 2024 Margin % 2025 Margin % 2024 Margin % GAAP Operating Income $ 184.8 18 % $ 161.7 17 % $ 366.8 19 % $ 314.8 17 % Amortization of acquired intangibles 49.8 5 % 50.3 5 % 99.4 5 % 100.6 5 % Acquisition and integration-related charges (1) 9.6 1 % 1.8 — % 13.9 1 % 12.3 1 % Exit of business (2) — — % 1.1 — % — — % 1.5 — % Medical device regulations (3) 5.3 1 % 5.0 1 % 10.7 1 % 10.2 1 % Business optimization charges (4) — — % 4.2 1 % — — % 11.0 — % Other (5) — — % 0.7 — % 0.6 — % 1.5 — % Total 64.7 7 % 63.1 7 % 124.6 7 % $ 137.1 7 % Non-GAAP Operating Income $ 249.5 25 % $ 224.8 24 % $ 491.4 26 % $ 451.9 24 % Three Months Ended April 30, Six Months Ended April 30, (In millions, except per share amounts) 2025 EPS 2024 EPS 2025 EPS 2024 EPS GAAP Net Income $ 87.7 $ 0.44 $ 88.9 $ 0.44 $ 192.0 $ 0.96 $ 170.1 $ 0.85 Amortization of acquired intangibles 49.8 0.24 50.3 0.25 99.4 0.49 100.6 0.50 Acquisition and integration-related charges(1) 9.6 0.05 1.8 0.01 13.9 0.07 12.3 0.06 Exit of business(2) — — 1.1 0.01 — — 1.5 0.01 Medical device regulations(3) 5.3 0.02 5.0 0.03 10.7 0.05 10.2 0.06 Business optimization charges(4) — — 4.2 0.02 — — 11.0 0.04 Other(5) 17.4 0.09 3.6 0.02 19.9 0.10 7.2 0.04 Tax effects related to the above items (11.1 ) (0.06 ) (14.1 ) (0.07 ) (25.8 ) (0.13 ) (33.9 ) (0.17 ) Intra-entity asset transfers(6) 34.8 0.18 28.7 0.14 67.8 0.34 61.1 0.31 Total 105.8 0.52 80.6 0.41 185.9 0.92 170.0 0.85 Non-GAAP Net Income $ 193.5 $ 0.96 $ 169.5 $ 0.85 $ 377.9 $ 1.88 $ 340.1 $ 1.70 Weighted average diluted shares used 200.7 200.5 200.9 200.2 EPS, amounts and percentages may not sum or recalculate due to rounding. (1) Charges include the direct effects of acquisition accounting, such as amortization of inventory fair value step-up, professional services fees, regulatory fees and changes in fair value of contingent considerations, and items related to integrating acquired businesses, such as redundant personnel costs for transitional employees, acquisition-related non-cash cumulative true up adjustments reflecting changes in compensation, other acquired employee related costs, and integration-related professional services, manufacturing integration costs, legal entity and facility rationalization and other integration-related activities. The acquisition and integration-related charges in fiscal 2025 were primarily related to the obp Surgical and the Cook Medical acquisition and integration expenses. The acquisition and integration-related charges in fiscal 2024 were primarily related to the Cook Medical acquisition and integration expenses. Charges included $3.5 million and $4.8 million related to redundant personnel costs for transitional employees, $1.1 million and $2.4 million of professional services fees, $1.2 million and $2.1 million of inventory fair value step-up amortization, $1.1 million and $1.8 million of facility rationalization costs, and $0.3 million and $0.4 million of other acquisition and integration-related activities in the three and six months ended April 30, 2025. The three months ended April 30, 2025 also included $2.4 million of acquisition-related non-cash cumulative true-up adjustments reflecting changes in compensation. Charges included $0.9 million and $4.9 million related to redundant personnel costs for transitional employees, $0.6 million and $3.7 million of professional services fees, $0.1 million and $0.8 million of manufacturing integration costs, and $0.2 million and $2.9 million of other acquisition and integration-related activities in the three and six months ended April 30, 2024. (2) Charges include costs related to product line exits such as inventory write-offs, site closure costs, contract termination costs and specifically-identified long-lived asset write-offs. There were no exit of business charges in the three and six months ended April 30, 2025. Charges included $0.9 million and $0.9 million of write-offs of long-lived assets, $0.2 million and $0.6 million of other costs related to product line exits in the three and six months ended April 30, 2024. (3) Charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be limited to a specific time period. (4) Charges represent the costs associated with initiatives to increase efficiencies across the organization and optimize our overall cost structure, including changes to our IT infrastructure and operations, employee severance costs, legal entity and other business reorganizations, write-offs or impairments of certain long-lived assets associated with the business optimization activities. There were no business optimization charges in the three and six months ended April 30, 2025. Charges included $2.1 million and $8.1 million of employee severance costs, $1.0 million $1.3 million related to changes to our IT infrastructure and operations, and $1.1 million and $1.6 million of legal entity and other business reorganizations costs in the three and six months ended April 30, 2024. (5) Charges include certain business disruptions from natural causes, litigation matters and other items that are not part of ordinary operations. The adjustments to arrive at non-GAAP net income also include gains and losses on minority interest investments and accretion of interest attributable to acquisition installment payables. Charges in the three months ended April 30, 2025 included $16.7 million of gains and losses on minority interest investments, of which $15.7 million was related to loss on disposal of a minority interest investment, and $0.7 million of accretion of interest attributable to acquisition installment payables. Charges in the six months ended April 30, 2025 included $17.9 million of gains and losses on a minority interest investment, $1.4 million of accretion of interest attributable to acquisition installment payables, and $0.6 million legal fees. Charges included $1.5 million and $2.9 million of gains and losses on minority interest investments, $1.3 million and $2.7 million of accretion of interest attributable to acquisition installment payables, and $0.8 million and $1.6 million related to legal matters in the three and six months ended April 30, 2024. (6) In fiscal 2021, the Company transferred its CooperVision intellectual property and goodwill to its UK subsidiary. As a result, we recorded a deferred tax asset equal to approximately $2.0 billion as a one-time tax benefit in accordance with U.S. GAAP in fiscal 2021 as subsequently adjusted for changes in UK tax law. The non-GAAP adjustments reflect the ongoing net deferred tax benefit from tax amortization each period under UK tax law. Audio Webcast and Conference Call The Company will host an audio webcast today for the public, investors, analysts and news media to discuss its second quarter results and current corporate developments. The audio webcast will be broadcast live on CooperCompanies' website, at approximately 5:00 PM ET. It will also be available for replay on CooperCompanies' website, Alternatively, you can dial in to the conference call at 800-715-9871; conference ID 1515103. About CooperCompanies CooperCompanies (Nasdaq: COO) is a leading global medical device company focused on helping people experience life's beautiful moments through its two business units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the contact lens industry, helping to improve the way people see each day. CooperSurgical is a leading fertility and women's healthcare company dedicated to putting time on the side of women, babies, and families at the healthcare moments that matter most. Headquartered in San Ramon, CA, CooperCompanies has a workforce of more than 16,000, sells products in over 130 countries, and positively impacts over fifty million lives each year. For more information, please visit Forward-Looking Statements This earnings release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements of which are other than statements of historical fact, including our fiscal year 2025 financial guidance, are forward looking. In addition, all statements regarding anticipated growth in our revenues, anticipated effects of any product recalls, anticipated market conditions, planned product launches, restructuring or business transition expectations, regulatory plans, and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words like "believes," "outlook," "probable," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties. Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse changes in the global or regional general business, political and economic conditions including the impact of continuing uncertainty and instability of certain countries, man-made or natural disasters and pandemic conditions, that could adversely affect our global markets, and the potential adverse economic impact and related uncertainty caused by these items; the impact of international conflicts and the global response to international conflicts on the global and local economy, financial markets, energy markets, currency rates and our ability to supply product to, or through, affected countries; our substantial and expanding international operations and the challenges of managing an organization spread throughout multiple countries and complying with a variety of legal, compliance and regulatory requirements; the actual imposition or threats of tariffs, customs duties and fees by the U.S. government and other nations in response and other retaliatory actions, such as trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers, as well as the impact of the Company's efforts to mitigate the effect of such tariffs; foreign currency exchange rate and interest rate fluctuations including the risk of fluctuations in the value of foreign currencies or interest rates that would decrease our net sales and earnings; our existing and future variable rate indebtedness and associated interest expense is impacted by rate increases, which could adversely affect our financial health or limit our ability to borrow additional funds; changes in tax laws, examinations by tax authorities, and changes in our geographic composition of income; acquisition-related adverse effects including the failure to successfully achieve the anticipated net sales, margins and earnings benefits of acquisitions, integration delays or costs and the requirement to record significant adjustments to the preliminary fair value of assets acquired and liabilities assumed within the measurement period, required regulatory approvals for an acquisition not being obtained or being delayed or subject to conditions that are not anticipated, adverse impacts of changes to accounting controls and reporting procedures, contingent liabilities or indemnification obligations, increased leverage and lack of access to available financing (including financing for the acquisition or refinancing of debt owed by us on a timely basis and on reasonable terms); compliance costs and potential liability in connection with U.S. and foreign laws and health care regulations pertaining to privacy and security of personal information such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the California Consumer Privacy Act (CCPA) in the U.S. and the General Data Protection Regulation (GDPR) requirements in Europe, including but not limited to those resulting from data security breaches; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development, distribution facilities or raw material supply chain due to challenges associated with integration of acquisitions, man-made or natural disasters, pandemic conditions, cybersecurity incidents or other causes; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development or distribution facilities due to the failure to perform by third-party vendors, including cloud computing providers or other technological problems, including any related to our information systems maintenance, enhancements or new system deployments, integrations or upgrades; a successful cybersecurity attack which could interrupt or disrupt our information technology systems, or those of our third-party service providers, or cause the loss of confidential or protected data; market consolidation of large customers globally through mergers or acquisitions resulting in a larger proportion or concentration of our business being derived from fewer customers; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and enforcement guidance, which affect areas of our operations including, but not limited to, those affecting the health care industry, including the contact lens industry specifically and the medical device or pharmaceutical industries generally, including but not limited to the EU Medical Devices Regulation (MDR), and the EU In Vitro Diagnostic Medical Devices Regulation (IVDR); legal costs, insurance expenses, settlement costs and the risk of an adverse decision, prohibitive injunction or settlement related to product liability, patent infringement, contractual disputes, or other litigation; limitations on sales following product introductions due to poor market acceptance; new competitors, product innovations or technologies, including but not limited to, technological advances by competitors, new products and patents attained by competitors, and competitors' expansion through acquisitions; reduced sales, loss of customers, reputational harm and costs and expenses, including from claims and litigation related to product recalls and warning letters; failure to receive, or delays in receiving, regulatory approvals or certifications for products; failure of our customers and end users to obtain adequate coverage and reimbursement from third-party payers for our products and services; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including goodwill, other intangible assets and idle manufacturing facilities and equipment; the success of our research and development activities and other start-up projects; dilution to earnings per share from acquisitions or issuing stock; impact and costs incurred from changes in accounting standards and policies; risks related to environmental laws and requirements applicable to our facilities, products or manufacturing processes, including evolving regulations regarding the use of hazardous substances or chemicals in our products; risks related to environmental, social and corporate governance (ESG) issues, including those related to regulatory and disclosure requirements, climate change and sustainability; and other events described in our Securities and Exchange Commission filings, including the 'Business', 'Risk Factors' and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, as such Risk Factors may be updated in annual and quarterly filings. We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law. Contact: Kim DuncanVice President, Investor Relations and Risk Management925-460-3663ir@ COOPER COMPANIES, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets(In millions)(Unaudited) April 30, 2025 October 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 116.2 $ 107.6 Trade receivables, net 780.9 717.0 Inventories 880.3 802.7 Prepaid expense and other current assets 348.3 324.2 Total current assets 2,125.7 1,951.5 Property, plant and equipment, net 1,928.5 1,863.4 Goodwill 3,864.7 3,838.4 Other intangibles, net 1,694.0 1,791.0 Deferred tax assets 2,141.7 2,210.3 Other assets 659.0 660.6 Total assets $ 12,413.6 $ 12,315.2 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 59.8 $ 33.3 Accounts Payable 244.2 260.5 Employee compensation and benefits 157.1 174.8 Deferred revenue 127.6 129.9 Other current liabilities 423.8 424.3 Total current liabilities 1,012.5 1,022.8 Long-term debt 2,525.6 2,550.4 Deferred tax liabilities 99.1 96.0 Long-term tax payable 17.7 57.5 Deferred revenue 196.4 193.3 Other liabilities 274.2 311.6 Total liabilities 4,125.5 4,231.6 Stockholders' equity 8,288.1 8,083.6 Total liabilities and stockholders' equity $ 12,413.6 $ 12,315.2 THE COOPER COMPANIES, INC. AND SUBSIDIARIES Consolidated Statements of Income(In millions, except per share amounts)(Unaudited) Three Months EndedApril 30, Six Months EndedApril 30, 2025 2024 2025 2024 Net sales $ 1,002.3 $ 942.6 $ 1,967.0 $ 1,874.2 Cost of sales 323.2 311.4 627.7 619.2 Gross profit 679.1 631.2 1,339.3 1,255.0 Selling, general and administrative expense 399.0 380.3 786.9 761.2 Research and development expense 45.5 38.9 86.2 78.4 Amortization of intangibles 49.8 50.3 99.4 100.6 Operating income 184.8 161.7 366.8 314.8 Interest expense 24.2 28.9 50.2 58.8 Other expense, net 16.1 2.8 18.8 6.0 Income before income taxes 144.5 130.0 297.8 250.0 Provision for income taxes 56.8 41.1 105.8 79.9 Net income $ 87.7 $ 88.9 $ 192.0 $ 170.1 Earnings per share - diluted $ 0.44 $ 0.44 $ 0.96 $ 0.85 Number of shares used to compute diluted earnings per share 200.7 200.5 $ 200.9 200.2 THE COOPER COMPANIES, INC. AND SUBSIDIARIES GAAP to Non-GAAP ReconciliationConstant Currency Revenue Growth and Organic Revenue Growth Net Sales % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 CooperVision $ 669.6 5 % 2 % 7 % — % 7 % CooperSurgical 332.7 8 % 1 % 9 % (2) % 7 % Total $ 1,002.3 6 % 1 % 7 % — % 7 %Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Health
- Bloomberg
An Architectural Masterpiece in Jackson Hole Hits the Market for $60 Million
As a child growing up in Brooklyn, New York, Gerald Dorros says he was obsessed with the American West and wanted to be a cowboy. Instead, he studied medicine and become a trailblazing cardiologist who patented medical devices and was among the first doctors in the US to do coronary angioplasties. Still, Dorros loved the wide open spaces of Wyoming, and he'd often come the popular ski resort area of Jackson Hole on family vacations. In 1997 the doctor bought a tract of land in Wilson, a 20-minute drive from the town of Jackson, and built a home there. He lived out his cowboy dreams by learning to ride horses and even won a rodeo championship. But in December 2017 his home burned down in a blaze that took the fire department several days to put out. Dorros' entire family, including his grandchildren, were visiting for the holidays, but thankfully no one was hurt.
Yahoo
3 days ago
- Business
- Yahoo
Medtronic plc (MDT): A Bull Case Theory
We came across a bullish thesis on Medtronic plc (MDT) on Investing Intel's Substack. In this article, we will summarize the bulls' thesis on MDT. Medtronic plc (MDT)'s share was trading at $80.68 as of 23rd May. MDT's trailing and forward P/E were 22.35 and 14.08 respectively according to Yahoo Finance. An assembly line of medical devices being packed for distribution. Medtronic PLC (MDT) delivered robust Q4 and FY2025 results, showcasing solid execution across its portfolio and setting the stage for a strategic transformation. Quarterly revenue grew organically by over 5% to $8.93 billion, with adjusted EPS up 11% to $1.62, and operating profit rising 7.6% year over year to $2.5 billion—or nearly 13% on a constant currency basis. For the full fiscal year, Medtronic generated $33.54 billion in revenue, up nearly 5% organically, and delivered $5.49 in adjusted EPS. Strength was broad-based across all segments, with cardiovascular and diabetes leading the charge—each posting 12% organic growth, underscoring renewed momentum in key franchises. In a major strategic move, Medtronic announced plans to spin off its diabetes business within the next 18 months, aiming to streamline operations, improve focus, and enhance margin profile. The spin-off will be internally led, suggesting continuity and deep institutional knowledge to support the transition. This separation reflects management's intent to unlock value and pursue more focused innovation, particularly in core segments like cardiovascular, neurovascular, and surgical robotics. The diabetes unit, despite recent growth, has historically lagged in profitability and innovation compared to Medtronic's higher-margin units, and its spin-off could help drive a re-rating of MDT shares. Investors now see a cleaner, more focused medical device company emerging, backed by stable cash flow, improving margins, and strong earnings momentum. If successfully executed, the spin-off may unlock hidden value, positioning MDT as a leaner and more agile player in medtech. Previously, we have covered Medtronic plc (MDT) in April 2025 wherein we summarized a bullish thesis by Magnus Ofstad on Substack. The author emphasized the company's ongoing transformation amid operational challenges and strategic realignment. The article highlighted activist investor Starboard Value's involvement as a potential catalyst for streamlining operations, pushing divestitures, and revitalizing innovation, particularly through platforms like the HUGO Robotic Surgery System. Despite trailing peers in growth and margins, MDT was framed as a defensive value play with upside potential if it successfully executes on its strategic pivot. Since our last coverage, the stock has traded mostly flat as of 27th March. Medtronic plc (MDT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held MDT at the end of the first quarter which was 67 in the previous quarter. While we acknowledge the risk and potential of MDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Trade Arabia
4 days ago
- Health
- Trade Arabia
King Faisal Hospital gets ISO certification for 3D printing services
King Faisal Specialist Hospital & Research Centre (KFSHRC) has earned ISO 13485:2016 certification for its 3D Printing Services Department. This ISO certification represents the highest global standards for quality management systems in the design and manufacture of medical devices. It reflects the KFSHRC's strength in delivering innovative, custom-made solutions in complex clinical settings with rigorous quality control and assurance, said the Saudi facility in a statement. KFSHRC's 3D Printing Services Department has become a cornerstone of the hospital's precision healthcare ecosystem. The department uses advanced additive manufacturing to produce patient-specific anatomical models, surgical guides, prosthetics and implants to improve surgical planning, reduce intraoperative risks, and augment clinical outcomes, it stated. In 2023, the department produced over 1,100 physical models and more than 5,000 digital simulations, which shortened average surgery time by 30% and reduced complications by 85%, significantly improving patient satisfaction. KFSHRC's achievements in this field have also garnered international recognition. The hospital was ranked among the top 20 Saudi government entities in the Emerging Technology Adoption Readiness Index for 2025. The Global Project Management Forum (GPMF) awarded its 3D Printing Project the 2024 Global Excellence Award in Technology Project Management. "Our mission is to conduct cutting-edge, multidisciplinary research and integrate the innovative technologies into medical practice. Our expertise in 3D printing, artificial intelligence and robotics is combined to advance healthcare delivery. We are expanding our technology platforms and working towards our Kingdom's Vision 2030 to spin off a 3D printing medical technology company that would provide a broad healthtech and socioeconomic impact," he added. Notably, for the third consecutive year, KFSHRC has been ranked first in the Middle East and Africa and 15th globally in the list of the world's top 250 Academic Medical Centres. According to the 2025 Brand Finance rankings, it has been recognized as the most valuable healthcare brand in the Kingdom and the Middle East. Additionally, it was included in Newsweek magazine's World's Best Smart Hospitals list for 2025.
Reuters
5 days ago
- Business
- Reuters
Boston Scientific to stop heart device sales, not seek new approvals
May 28 (Reuters) - Boston Scientific (BSX.N), opens new tab said on Wednesday it has stopped global sales of its heart device and will not seek approval in geographies it is not yet available due to increased clinical and regulatory requirements. Shares of the device maker fell 1.5% to $104.57 in premarket trading. The devices, called transcatheter aortic valve replacement (TAVR), had obtained the European Union's CE-mark and were sold under the brands Acurate Prime and Acurate neo2 for minimally invasive heart surgeries. But the company said recent discussions with U.S. and other regulators resulted in increased requirements to maintain regulatory approvals in existing and new markets. "The resources and investments necessary to meet these new requirements are prohibitive," the company said. The company expects to meet second quarter and full-year outlook despite the anticipated financial hit from the decision, Boston said, adding that it has not reaffirmed the outlook.
