Like many stocks, Medtronic (MDT 0.69%) rebounded nicely following the major market meltdown in late February and March. But while some stocks kept on climbing throughout the summer, Medtronic's bounce stalled.

The medical device giant had an opportunity to pick up some momentum as the company announced its fiscal 2021 first-quarter results before the market opened on Tuesday. Here are the highlights of Medtronic's Q1 update.

First quarter key on keyboard.

Image source: Getty Images.

By the numbers

Medtronic reported revenue of $6.5 billion in the first quarter, down 13% year over year. Despite this decline, the company's top line still handily beat the average analysts' Q1 revenue estimate of $5.44 billion.

The company announced Q1 net income of $487 million, or $0.36 per share, based on generally accepted accounting principles (GAAP). This reflected a sharp decrease from GAAP earnings of $864 million, or $0.64 per share, posted in the prior-year period.

Medtronic recorded adjusted non-GAAP earnings of $836 million, or $0.62 per share, a 51% year-over-year plunge. However, the company still trounced the consensus Wall Street adjusted earnings estimate of $0.18 per share.

Behind the numbers

The year-over-year revenue decline was actually even worse than it looks. Medtronic's top line was around $15 million higher than it would have been otherwise because of its acquisition of Titan Spine. It also received a boost of between $360 million and $390 million from an extra week in the quarter compared to the prior-year period. This extra week increased adjusted earnings by between $0.06 and $0.10 per share.

There's no question why Medtronic's sales sank. The COVID-19 pandemic took a toll on every major area of the company's business.

Cardiac and vascular group revenue fell 13% year over year in the fiscal first quarter to $2.433 billion. Minimally invasive therapies group revenue declined 14% to $1.801 billion. Restorative therapies group revenue dropped 15% to $1.712 billion. The company's diabetes group performed best of all, but still saw revenue slip 5% to $562 million.

Despite the negative impact of the coronavirus outbreak, though, Medtronic performed better in its fiscal first quarter than analysts thought it would. CEO Geoff Martha said that the Q1 results "reflect a faster-than-expected recovery from the depths of the pandemic we saw back in April."

Looking ahead

The COVID-19 pandemic will continue to be the main wild card for the healthcare stock going forward. Because of the uncertainty created by the pandemic, Medtronic didn't provide financial guidance for the full year or for its fiscal second quarter.

Geoff noted, though, that procedure volumes are recovering across the world. He said, "We are driving toward faster and broader topline growth, not just as we emerge from the pandemic, but sustainable growth over the long term."