The COVID-19 pandemic has had a huge impact on medical equipment manufacturers, with quickly shifting extreme highs and lows in revenue, reports the Economist.
Few industries have whipsawed in the covid-19 recession as violently as medical-device makers. The pandemic led to a collapse in elective medical procedures requiring their sophisticated kit, dealing a powerful blow to sales. At the same time, the crisis created opportunities for firms making ventilators and testing kit.
For an illustration of how this dynamic has played out, consider Medtronic. On August 25th the American giant, with a market capitalisation of $138bn, reported its financial results for the three months to July. On the face of it, its performance was abysmal. Revenues fell by 17% compared with the same quarter a year ago, to $6.5bn. Net income plunged by nearly half. Citing the pandemic, the firm refused to provide earnings guidance.
And yet investors and analysts cheered.
Read the full article at the Economist.