Medtronic Earnings Call Nuggets: Pricing Details and Inventory Levels Outlook

Medtronic, Inc. (NYSE:MDT) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.

Pricing Details

Matthew Dodds – Citigroup: I wanted to focus first on pricing. Omar and Gary, you both highlighted CRM sound a little better in the U.S., down 2%. Can you comment on what pacing was in the U.S., maybe what stents were and then broadly, how Europe is behaving? I’m trying to see if some other comments from your competitors about pricing looking a little better, if you agree with that view broadly?

Omar Ishrak – Chairman and CEO: I’ll let Gary comment.

Gary Ellis – SVP and CFO: Yeah. I mean, Matt, overall, as you indicated, we saw a little bit of – obviously, in ICDs we saw tempering of the kind of the decline, down a couple percent. Pacing was also kind of down at low-single-digits and so, we saw improvement there. Stents I think have been – it varies kind of around (indiscernible) they have been probably closer and more in the high-single-digits as far as some of the declines there, depending on what geography you are in. So, we continue to see pricing declines on the drug-eluting stents side that are pretty consistent with what we’ve seen over the last several quarters. But clearly, with the product launches we had both in pacing and on high-power, we are seeing a little bit of tempering on the pricing pressure.

Matthew Dodds – Citigroup: And then just one quick ICD question. When you look at the bulking, Q4 didn’t factor into Q1 is the comments from the call; you got to hit in Q1 but you expect to improve in Q2 or do you think Q4 there was some additional bulking on that quarter that impacted Q1?

Omar Ishrak – Chairman and CEO: I think largely you’re correct. I think it was mostly Q1 – isolated to Q1 itself and the dynamics are between Q1 and Q2 as opposed to Q4…

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