Medtronic Lifts Annual Forecast On Better Than Expected Q1 Performance Across All Categories

Medtronic Plc's MDT reported Q1 FY24 sales of $7.7 billion, up 4.5% Y/Y as reported and 6% organic, ahead of expectations, beating the consensus of $7.57 billion.

The company's organic revenue results reflect broad strength across businesses and geographies, driven by execution and improved underlying fundamentals.

Medtronic's heart device unit sales increased 5.5% Y/Y (+6.2% organic) to $2.85 billion. Spine & neurosurgery product segment sales increased 4.9% Y/Y (+5.6%) to $2.2 billion.

The Medical Surgical Portfolio sales increased 5.5% (+6.1% organic) to $2.04 billion. Diabetes revenue of $578 million increased by 6.8% (+6.3%).

Also Read: Medtronic Says New Data For MiniMed 780G Supports Use In Children With Diabetes.

The adjusted EPS of $1.20 increased by 6%, exceeding the consensus of $1.11.

Guidance: Medtronic raised its FY24 revenue growth and EPS guidance, and it expects FY24 organic revenue growth of 4.5% versus the prior range of 4.0%-4.5%.

"Our revenue outperformance and focus on expense management drove operating margin expansion and mid-single digit adjusted earnings growth this quarter," said Karen Parkhill, Medtronic EVP & chief financial officer. 

"Given our first quarter performance, including a 7% operational beat on the bottom line, and improved fundamentals, we're raising our full-year organic revenue growth and EPS guidance."

Medtronic expects FY24 adjusted EPS of 5.08-$5.16, up from prior guidance of $5.00-$5.10, compared to the consensus of $5.05.

Price Action: MDT shares are up 0.54% at $82.05 during the premarket session on the last check Tuesday.