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Oct 27, 2023

Medtronic Q2 2024 Earnings Report

Medtronic's financial performance for Q2 2024 reflected mid-single digit revenue growth, driven by broad-based strength across multiple businesses and geographies, and increased fiscal year guidance.

Key Takeaways

Medtronic reported a solid Q2 2024 with revenue of $8.0 billion, a 5.3% increase as reported and 5.0% organically. GAAP EPS was $0.68, and non-GAAP EPS was $1.25. The company raised its FY24 organic revenue growth and EPS guidance.

Revenue increased 5.3% as reported and 5.0% organic.

GAAP diluted earnings per share (EPS) of $0.68; non-GAAP diluted EPS of $1.25.

Underlying business fundamentals are strong with broad-based, diversified growth coming from multiple businesses and geographies

Company increases FY24 organic revenue growth and EPS guidance

Total Revenue
$7.98B
Previous year: $7.59B
+5.3%
EPS
$1.25
Previous year: $1.3
-3.8%
Total Organic Revenue Growth
5%
Previous year: 2%
+150.0%
Gross Profit
$5.22B
Previous year: $5.05B
+3.4%
Cash and Equivalents
$1.31B
Previous year: $4.83B
-72.8%
Free Cash Flow
$721M
Previous year: $1.26B
-42.6%
Total Assets
$90.1B
Previous year: $93.2B
-3.4%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

The company raised its FY24 revenue growth and EPS guidance. The company increased its FY24 organic revenue growth guidance to 4.75% versus the prior 4.5%. The company 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

Positive Outlook

  • FY24 organic revenue growth guidance increased to 4.75%.
  • FY24 diluted non-GAAP EPS guidance increased to a range of $5.13 to $5.19.
  • Second quarter outperformance.
  • Updated tax estimates.
  • Changes to operating model, incentives, and capital allocation.

Challenges Ahead

  • Foreign exchange impact on FY24 diluted non-GAAP EPS is now estimated to be 2 cents more unfavorable in the second half.
  • Foreign exchange impact is estimated to be a 6% unfavorable impact for the full year.
  • Unspecified risks related to competitive factors.
  • Unspecified difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products.
  • Unspecified government regulation and geopolitical conflicts

Revenue & Expenses

Visualization of income flow from segment revenue to net income