Medtronic Reports Significant COVID-19 Impact on Its Business

Medtronic's (NYSE: MDT) business is taking a serious hit as a result of the COVID-19 pandemic. With overwhelmed healthcare systems around the world diverting resources and personnel to coronavirus patients, the number of surgical procedures being performed with Medtronic's devices has declined sharply. As a result, the company has experienced deep revenue decreases over the past few weeks across every region in which it operates. In Western Europe, where Medtronic typically generates about 20% of its top line, the company started experiencing year-over-year revenue declines of 20% to 30% the week of March 23.

In the U.S., where Medtronic makes a little over half of its revenue, the company said its top line started decreasing by about 60% year over year the week of March 16. What's more, management is expecting the drag on the bottom line to be even worse. The company has continued to operate its medical device manufacturing at (or near) full capacity despite the decrease in sales. In short, investors should expect Medtronic's financial results for its current quarter -- Q4 of its fiscal 2020 -- to be ugly.

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Source Fool.com