What To Expect When Medtronic Reports Q1 Earnings Next Week

Medtronic Plc MDT will report its Q1 FY24 earnings on Tuesday, 8/22/23. Needham provides a preview of its earnings report, including expectations for F1Q24 results, FY24 guidance, and discussion topics for the call.

Analysts Mike Matson, David Saxon, and Joseph Conway expect Medtronic to beat consensus revenue and EPS, given strong elective procedure growth and management's conservative guidance, and raise its FY24 guidance. 

After several transitory challenges in the past few years, including supply chain issues, a warning letter, and disappointing clinical trial results, Needham says Medtronic appears to be turning a corner. 

Also Read: Medtronic Recalls Certain Heart Failure Devices Citing Risk Of Low, No Energy Output During High Voltage Therapy.

CEO Geoff Martha has orchestrated a shift in MDT's strategic focus, emphasizing capturing greater market share and boosting revenue growth. According to insights from Needham, the company's performance vis-a-vis its competitors has displayed a mixed trend over recent quarters. 

MDT's strategy entails utilizing portfolio management techniques such as mergers and acquisitions and divestitures to propel its weighted average market growth rate to higher levels.

As Medtronic's revenue growth rebounds from the challenges posed by the pandemic and supply chain disruptions, the company is poised to resume its drive for incremental improvements in operating margins. This trajectory would enable the company to harness its low- to mid-single-digit revenue growth, translating it into robust single-digit growth in EPS.

The value of MDT shares appears to have reached its lowest point, and there is a noticeable upswing in investor sentiment. Nonetheless, Needham analysts write that MDT will need a sustained period of strong execution to regain the confidence of most investors.

Price Action: MDT shares are up 0.39% at $81.89 on the last check Thursday.