Medtronic Incoming CEO Plans to Drive Sales
- February 25, 2020
Pipeline, Sales Initiatives In Focus Following Light Third Quarter Revenues
Following Medtronic Inc.'s light third quarter sales, management discussed initial steps, led by incoming CEO Geoff Martha, to prevent transient issues from impacting forecasted results looking ahead. The primary focus is creating incentives to drive sales more evenly during a quarter vs. skewed heavily toward quarter-end. Medtronic can push these initiatives heading into fiscal year 2021 given the benefit of one extra selling week in first quarter.
Third quarter did demonstrate better than expected operating leverage and free cash flow, with the latter starting to be deployed more aggressively (Digital Surgery acquisition). Medtronic expressed comfort with faster (~4.5% year over year) fourth quarter growth and raised fiscal year earnings per share guidance by ~$0.04 at mid-point before coronavirus impact (update provided later fourth quarter). Several pipeline milestones in focus ahead led by Spyral renal denervation data next month.
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