Medtronic today announced financial results for Q4 2014 which ended April 25, 2014. Omar Ishrak, Chairman and CEO of Medtronic Inc. (NYSE: MDT) discussed the earnings results in detail on a conference call held earlier today. Below is the full commentary…
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 fiscal 2014. We grew our FY14 revenue 4% which was in line with our revenue outlook for the year and just 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 lab managed services and Cardiocom offering which combined contributed 30 basis points of growth and $51 million of incremental revenue.
Healthcare payments and delivery systems are changing and evolving around the world. Through these efforts, we feel we are well-positioned not only to respond to these system changes but to demonstrate the role medical technology and related services can play in making this healthcare transformation successful.
Looking at the P&L, while we delivered a modest amount of SG&A leverage on an operational basis, we failed to meet our SG&A leverage goal for the year due to our Q4 spending which I will address in a minute.
However on an operational basis, we did deliver 50 basis points of operating leverage in FY14. And looking at our FY14 EPS, we were in the middle of our guidance range for the year covering for the incremental pressure from the medical device tax.