Medtronic plc (NYSE:MDT) Q4 2019 Earnings Conference Call - Final Transcript

May 23, 2019 • 08:00 am ET


Medtronic plc (NYSE:MDT) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Carol and I'll be your operator today. At this time, I would like to welcome everyone to the Medtronic Fourth Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, we will have a question-and-answer session. (Operator Instructions)

At this time, I would like to turn the call over to Ryan Weispfenning, Vice President-Investor Relations.

Ryan Weispfenning

Thank you. Good morning and welcome to Medtronic's fourth quarter conference call and webcast. During the next hour, Omar Ishrak, Medtronic's Chairman and Chief Executive Officer; and Karen Parkhill, Medtronic's Chief Financial Officer will provide comments on the results of our fourth quarter and fiscal year 2019, which ended on April 26th, 2019. After our prepared remarks, we'll be happy to take your question.

First, a few logistical comments. Earlier this morning we issued a press release containing our financial statements and the revenue by division summary. We also issued an earnings presentation that provides additional details on our performance and outlook.

During today's earnings call, many of the statements made may be considered forward-looking statements and actual results may 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 period reports and other filings that we make with the SEC and we do not undertake to update any forward-looking statements.

In addition, the reconciliations of any non-GAAP financial measures are available on our website, References to organic revenue growth exclude the impact of material acquisitions, divestitures and currency. References to pro forma exclude the impact of material divestitures.

Unless we say otherwise, quarterly rates and ranges are given on a constant currency basis, which compares to the fourth quarter of fiscal year 2018 after adjusting for currency. Unless we say otherwise, annual rates and ranges are given on a comparable constant currency basis, which compares to fiscal year 2018 after adjusting for currencies and the fiscal year '18 divestiture of the Patient Care, DVT and Nutritional Insufficiency business.

All of these adjustment details can be found in the reconciliation tables included with our earnings press release. Finally, our EPS guidance does not include any charges or gains that would be reported as non-GAAP adjustments to earnings during the fiscal year.

With that, I'm now pleased to turn the call over to Medtronic Chairman and Chief Executive Officer, Omar Ishrak. Omar?

Omar Ishrak

Thank you, Ryan, and thank you to everyone for joining us. This morning, we reported a solid finish to a strong fiscal year for Medtronic. We delivered revenue growth, operating margin and EPS all ahead of Street expectations. Q4 revenue grew 3.6% organic with outperformance in RTG and MITG offsetting challenges in CVG and difficult comparisons in diabetes.

In addition, the emerging markets continued to be a big driver, growing 12%. Our adjusted operating margin expanded 140 basis points, including currency, reflecting our entire organization's focus on Enterprise Excellence.

On the bottom line, we grew adjusted