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Medtronic PLC (MDT) Reports Solid Q2 FY24 Results with Revenue and EPS Growth

  • Medtronic PLC (NYSE:MDT) posted a 5.3% year-over-year revenue increase to $8.0 billion in Q2 FY24.

  • GAAP diluted EPS rose to $0.68, with non-GAAP diluted EPS at $1.25.

  • Medtronic PLC (NYSE:MDT) raises FY24 organic revenue growth and EPS guidance, reflecting confidence in continued growth.

On November 21, 2023, Medtronic PLC (NYSE:MDT) released its 8-K filing, announcing financial results for the second quarter of fiscal year 2024, which ended on October 27, 2023. The company reported a solid quarter with a 5.3% increase in revenue to $8.0 billion, compared to the same period last year. This growth was driven by broad-based strength across multiple businesses and geographies. GAAP diluted earnings per share (EPS) doubled to $0.68, while non-GAAP diluted EPS was reported at $1.25, despite a 4% decrease due to an unfavorable impact from foreign currency translation.

Financial Performance Highlights

Medtronic PLC (NYSE:MDT)'s Q2 performance was underpinned by strong business fundamentals, with diversified growth coming from multiple businesses and geographies. The company's Cardiovascular Portfolio saw a 5.9% increase in revenue, while the Neuroscience Portfolio and Medical Surgical Portfolio grew by 4.7% and 7.0%, respectively. The Diabetes segment also reported a robust 9.7% increase in revenue.

Operational Achievements and Regulatory Approvals

During the quarter, Medtronic PLC (NYSE:MDT) received several key regulatory approvals, including U.S. FDA approval for the Aurora EV-ICD system and Symplicity Spyral renal denervation (RDN) system, and CE Mark for the Evolut FX TAVR system, Simplera standalone CGM, and PulseSelect pulsed field ablation (PFA) system. These approvals are expected to contribute to the company's future growth.

Updated Guidance

Reflecting the company's strong performance and confidence in its growth trajectory, Medtronic PLC (NYSE:MDT) has raised its FY24 organic revenue growth guidance to 4.75% from the previous 4.5%. The company also increased its FY24 diluted non-GAAP EPS guidance from the prior range of $5.08 to $5.16 to the new range of $5.13 to $5.19.

Management Commentary

Geoff Martha, Medtronic chairman and chief executive officer, commented on the results, stating,

Were delivering a track record of durable, mid-single digit revenue growth. The underlying fundamentals are strong, and our solid results were broad-based across our businesses and geographies,"

and

Were bringing game changing innovation to market, with numerous recent regulatory approvals and major product launches, which give us confidence in our ability to continue delivering dependable growth."

Karen Parkhill, Medtronic EVP & chief financial officer, added,

Overall, it was another good quarter as we delivered revenue, margins, and earnings ahead of expectations. Combining our second quarter outperformance with our updated tax and foreign currency estimates, were raising our full year organic revenue growth and EPS guidance."

Investor Relations and Upcoming Financial Reports

Medtronic PLC (NYSE:MDT) will host a video webcast to discuss the results and provide further details on its performance and outlook. The company also plans to report its FY24 third and fourth quarter results on February 20, 2024, and May 23, 2024, respectively.

Value investors and potential GuruFocus.com members may find Medtronic PLC (NYSE:MDT)'s consistent performance, innovative product pipeline, and raised guidance to be compelling reasons to consider the company as a part of their investment portfolio. The detailed financial schedules and non-GAAP reconciliations can be viewed on the company's investor relations website.

Explore the complete 8-K earnings release (here) from Medtronic PLC for further details.

This article first appeared on GuruFocus.

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