Medtronic plc (NYSE:MDT) Q4 2014 Earnings Conference Call - Preliminary Transcript

Apr 30, 2015 • 08:00 am ET


Medtronic plc (NYSE:MDT) Q4 2014 Earnings Conference Call - Preliminary Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Medtronic fourth quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. [Operator Instructions] Thank you. I will now turn the call over to Jeff Warren, Vice President of Investor Relations. Please go ahead sir.

Jeff Warren

Thank you, Lori. Good morning and welcome to Medtronic's fourth quarter conference call and webcast. During the next hour, Omar Ishrak, Medtronic Chairman and Chief Executive Officer, and Gary Ellis, Medtronic Chief Financial Office, will provide comments on the results of our fourth quarter and FY14, which ended April 25, 2014. After our prepared remarks, we will be happy to take your questions. First, a few logistical comments. Earlier this morning, we issued a press release containing our financial statements and a revenue by business summary. You should also note that some of the statements made during this call may be considered forward looking statements and that actual results might differ materially from those projected in any forward looking statement.

Additional information concerning factors that could cause actual results to differ is contained in our periodic reports filed with the SEC. Therefore, we do not undertake to update any forward looking statement. In addition, the reconciliations of any non GAAP financial measures are available on the Investors portion of our website at And finally, unless we say otherwise, references to quarterly or annual results increasing or decreasing are in comparison to the fourth quarter and FY13, respectively, and all year over year revenue growth rates are given on a constant currency basis. With that, I am now pleased to turn the call over to Medtronic Chairman and Chief Executive Officer, Omar Ishrak.

Omar Ishrak

Good morning and thank you, Jeff, and thank you to everyone for joining us today. This morning we reported fourth quarter revenue of $4.6 billion, which represents growth of 3.3% and Q4 non GAAP diluted earnings per share of $1.12. Before providing more detail on our Q4 performance, I would like to recap FY14. We grew our FY14 revenue 4%, which was in line with our revenue outlook for the year and within our mid single digit baseline goal. It represented another year of delivering consistent results. We made solid progress in a number of areas over the past year, including quantifying, communicating, and executing on each of our independent growth vectors.

Our first growth vector, new therapies, contributed 180 basis points of growth in FY14, as we launched several significant new products that provide tremendous patient benefit and will serve as important future growth platforms. In our emerging markets, we sustained double digit growth, which contributed nearly 150 basis points to our overall revenue growth and represented 12% of our global business in FY14. Finally, on our third growth vector, services and solutions, we sharpened our focus and economic value, translating our efforts into new value based business models, including our Cath