Medtronic
(NYSE: MDT)
today reported fourth-quarter results that beat the consensus forecast on Wall Street amid accelerating revenue growth.
The world’s largest medical device company also announced an acquisition: roughly $738 million for South Korea–based EOFlow and its EOFlow insulin delivery patch that a user can control using their smartphone.
Medtronic forecast that it will grow revenue up to 4.5% in the new fiscal year — a turnaround from the 1.4% revenue decline it saw in its fiscal year 2022–23. However, its earnings forecast for the new fiscal year appeared to come up a bit short of The Street’s expectations.
The initial earnings release and presentation included no additional details about the layoffs taking place amid significant cost reductions as the company seeks to refocus and drive growth.
Investors appeared to be initially positive about the results. MDT shares were up slightly to $88.23 apiece in pre-market trading this morning.
“We had a strong finish to our fiscal year, with our fourth quarter top- and bottom-line results coming in ahead of expectations. Our accelerating revenue growth was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions,” CEO Geoff Martha said in a news release. “We’re confident in delivering durable revenue growth in the year ahead as we drive execution across our businesses.”
Medtronic earned $1.19 billion, or 88¢ per share, off of $8.54 billion in revenue for the quarter ended April 28, 2023. GAAP EPS was down 20%. Revenue was up 5.6%.
Adjusted to exclude one-time items — including a $300 million IP agreement payment from an undisclosed structural heart competitor — Medtronic’s EPS was $1.57. The result was a penny ahead of The Street, where analysts expected EPS of $1.56 and revenue of $8.25 billion.
For the fiscal year ended April 2024, Medtronic expects 4–4.5% revenue growth — implying revenue in the $32.0–32.3 billion range — and adjusted EPS in the $5.00–$5.10 range. The Wall Street analyst consensus for the new year has been revenue of $32.28 billion and EPS of $5.20.