Medtronic reports revenue growth in Q2, raises FY24 outlook By

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Medtronic PLC (NYSE:) reported a 5.3% increase in second-quarter fiscal year 2024 revenue, reaching $8 billion, driven by growth across its major business segments. Despite an unfavorable foreign currency impact that reduced non-GAAP earnings per share (EPS) by 4%, the company saw gains in its cardiovascular (+5.9%), neuroscience (+4.7%), medical surgical (+7%), and diabetes (+9.7%) units. The reported GAAP EPS was $0.68, while the non-GAAP EPS stood at $1.25.

The medical device company also announced regulatory milestones with the FDA approval of Aurora EV-ICD and Symplicity Spyral RDN, as well as the CE Mark for the Evolut FX TAVR system among other products. These approvals are expected to bolster Medtronic’s market presence.

In light of these developments, Medtronic has revised its fiscal year 2024 guidance upwards. The company now anticipates organic revenue growth of 4.75%, an increase from the previously forecasted 4.5%. Additionally, the projection for non-GAAP EPS has been adjusted to a range of $5.13-$5.19, up from the initial estimate of $5.08-$5.16.

Chairman and CEO Geoff Martha attributed the company’s stable progress to durable growth and innovative product launches, while Executive Vice President and CFO Karen Parkhill recognized that financial results exceeding expectations justified the updated full-year outlook.

InvestingPro Insights

Medtronic PLC’s recent performance is further illuminated by real-time data and insights from InvestingPro. The company’s market capitalization stands at a robust $100 billion, with a price-to-earnings (P/E) ratio of 27.79, signaling investor confidence in its earnings potential. Additionally, Medtronic’s revenue growth over the last twelve months as of Q1 2024 has been positive, at 1.57%, reflecting steady business expansion.

InvestingPro Tips indicate that Medtronic has high earnings quality, with free cash flow surpassing net income, and it has a history of raising its dividend for 9 consecutive years, showcasing a commitment to returning value to shareholders. The company’s stock is known for low price volatility, which may appeal to investors seeking stability in their portfolio.

For those interested in deeper analysis, InvestingPro offers additional tips that highlight Medtronic’s position as a prominent player in the Healthcare Equipment & Supplies industry, with cash flows that can sufficiently cover interest payments. Currently, the InvestingPro subscription is on a special Black Friday sale, offering up to a 55% discount. With 8 additional tips available on InvestingPro, including predictions of profitability for this year and a track record of profitability over the last twelve months, subscribers can gain a more comprehensive understanding of the company’s financial health and future prospects.

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