In line with predictions made during first quarter earnings calls this spring, many medical device makers reporting second quarter results so far disclosed sequential business improvement across April, May and June as elective procedure volumes inch back toward pre-pandemic levels.
Further, many execs anecdotally suggested the upward trend continued into July. But amid the optimism, a growing number of medtechs have acknowledged some impact to recovery from regional flareups in COVID-19 cases.
Geographic differences have been key, Intuitive Surgical conveyed during its July 21 earnings call.
"During the quarter Florida recovered to pre-COVID levels on a run-rate basis, while New York did not. State specific containment strategies impacted procedure growth, and the timing of COVID outbreaks will play a role in driving geographic differences," said Intuitive exec Philip Kim, adding that investors should not assume the upward trend in worldwide procedures seen in June will necessarily continue as states like Texas, Florida and California provide examples of regions experiencing fluctuation.
In the view of Boston Scientific CEO Mike Mahoney during a July 29 earnings call: "When you have Florida and Texas have flare-ups like this, they are still doing procedures, but it does have some impact. So that’s why we’ve continued to suspend guidance, because it’s not all perfect out there, the hospitals are struggling, you’re seeing flare-ups."
Stryker CEO Kevin Lobo had a similar, though perhaps most optimistic, statement on the current procedures landscape during a July 30 earnings call.
"The reason we don't want to give guidance is it's hard to predict the nature of those flare-ups and how big those flare-ups will be," Lobo said, "but even today ... in Texas and in Florida and in Arizona surgeries are going on, and that gives us cause for optimism ... certainly for Q3 and beyond."
|Company||Q2 YOY revenue change||2020 guidance|
|Baxter||-4%||2020 sales: growth between -1% and 1%|
|Edwards Lifesciences||-15%||2020 sales: $4-4.5 billion|
|Smith & Nephew||-29.8%||No|
While many major medical device maker earnings have come and gone, large-cap players like Zimmer Biomet and BD are scheduled to share results this week, and Medtronic won't report its next results until Aug. 25.
Below is a roundup of some of MedTech Dive's key coverage since earnings season began.