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Jul 28, 2023

Medtronic Q1 2024 Earnings Report

Medtronic's Q1 2024 financial results were reported, showing broad strength across businesses and geographies, resulting in mid-single digit revenue growth.

Key Takeaways

Medtronic reported a solid start to fiscal year 2024, with revenue of $7.7 billion, a 4.5% increase as reported and 6.0% organic. GAAP EPS was $0.59, a 16% decrease, while non-GAAP EPS was $1.20, a 6% increase. The company has raised its FY24 organic revenue growth and EPS guidance.

Revenue of $7.7 billion increased 4.5% as reported and 6.0% organic.

GAAP diluted earnings per share (EPS) of $0.59 decreased 16%; non-GAAP diluted EPS of $1.20 increased 6%.

Company increases FY24 organic revenue growth and EPS guidance.

Commenced U.S. launches of the MiniMed™ 780G system with Guardian™ 4 sensor in Diabetes and the Micra™ AV2 and Micra™ VR2 leadless pacemakers in Cardiovascular.

Total Revenue
$7.7B
Previous year: $7.37B
+4.5%
EPS
$1.2
Previous year: $1.13
+6.2%
Total Organic Revenue Growth
6%
Previous year: -4%
-250.0%
Gross Profit
$5.07B
Previous year: $4.45B
+14.0%
Cash and Equivalents
$1.34B
Previous year: $2.14B
-37.4%
Free Cash Flow
$521M
Previous year: $657M
-20.7%
Total Assets
$90.8B
Previous year: $89.9B
+1.0%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

The company raised its FY24 organic revenue growth guidance to 4.5% versus the prior range of 4.0% to 4.5%. The company increased its FY24 diluted non-GAAP EPS guidance from the prior range of $5.00 to $5.10 to the new range of $5.08 to $5.16.

Positive Outlook

  • Revenue outperformance
  • Focus on expense management
  • Operating margin expansion
  • Mid-single digit adjusted earnings growth
  • Improved fundamentals

Challenges Ahead

  • Impact of foreign currency
  • Revenue related to certain businesses reported as Other
  • Uncertainty of potential charges or gains
  • Difficult to predict the timing of recognition of potential charges or gains
  • Such items could have a substantial impact on GAAP measures of financial performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income