Medtronic Reports Strong Q3 2024 Results, Raises Full-Year Guidance

DUBLIN, Feb. 20, 2024 - Medtronic plc (NYSE: MDT) announced its financial results for the third quarter of fiscal year 2024 (FY24), which ended on January 26, 2024. The company reported a 4.7% increase in revenue, reaching $8.1 billion. Medtronic experienced strong growth in various segments, including Core Spine, Cardiac Surgery, Structural Heart, and Cardiac Pacing, as well as in international markets. Additionally, the Diabetes division saw double-digit growth as the U.S. business returned to growth.

The company's GAAP diluted earnings per share (EPS) for the quarter were $0.99, while the non-GAAP diluted EPS stood at $1.30. Medtronic also raised its full-year organic revenue growth guidance and EPS guidance.

Medtronic received significant approvals during the quarter, including the U.S. FDA approval for the PulseSelect™ pulsed field ablation system and the Percept™ RC neurostimulator with BrainSense™ technology. They also received the CE Mark for the MiniMed™ 780G System with Simplera Sync™ CGM, as well as the Micra™ AV2 and Micra™ VR2 leadless pacemakers.

In terms of revenue, Medtronic reported that its Cardiovascular Portfolio, which includes the Cardiac Rhythm & Heart Failure, Structural Heart & Aortic, and Coronary & Peripheral Vascular divisions, generated $2.929 billion, reflecting a 6.1% increase in revenue.

The Neuroscience Portfolio, which includes the Cranial & Spinal Technologies, Specialty Therapies, and Neuromodulation divisions, reported revenue of $2.355 billion, up 4.8% from the previous year.

The Medical Surgical Portfolio, consisting of the Surgical & Endoscopy and Patient Monitoring & Respiratory Interventions divisions, recorded a revenue increase of 3.9%, reaching $2.148 billion.

Medtronic's Diabetes division reported a revenue increase of 12.3%, totaling $640 million. The U.S. market saw mid-single digit growth as a result of the launch of the MiniMed™ 780G system and a significant increase in the customer base for insulin pumps.

In portfolio management updates, Medtronic announced its decision to exit the ventilator product line and combine the remaining businesses of the Patient Monitoring and Respiratory Interventions divisions into one unit called Acute Care and Monitoring. This strategic move allows for increased investment and focuses on profitable growth within the newly formed division.

Based on its strong performance, Medtronic raised its FY24 revenue growth and non-GAAP diluted EPS guidance. The company now expects organic revenue growth in the range of 4.75% to 5% and non-GAAP EPS in the range of $5.19 to $5.21.

Medtronic is committed to driving durable sales growth, improving margins, and creating value for its shareholders. The company remains confident in its ability to lead in the healthcare technology industry with its innovative products.

Medtronic will host a video webcast today, providing detailed information about its businesses to investors, analysts, and the media.

The company is scheduled to report its FY24 fourth-quarter results on May 23, 2024, and will provide further updates for fiscal year 2025 closer to the specific events.

For more information about Medtronic's financial results and future updates, visit their investor relations website.