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Medtronic plc (NYSE: MDT) today released its financial results for the fourth quarter (Q4) and fiscal year 2024 (FY24), which ended on April 26, 2024. The company reported steady growth, increased shareholder returns, and provided guidance for FY25.
Q4 FY24 Performance:
- Revenue: $8.6 billion, a 0.5% increase as reported and a 5.4% increase organically.
- GAAP Diluted Earnings Per Share (EPS): $0.49
- Non-GAAP Diluted EPS: $1.46
FY24 Performance:
- Revenue: $32.4 billion, up 3.6% as reported and 5.2% organically.
- GAAP Diluted EPS: $2.76
- Non-GAAP Diluted EPS: $5.20
- Cash from Operations: $6.8 billion, a 12% increase.
- Free Cash Flow: $5.2 billion, a 14% increase.
Medtronic returned $5.5 billion to shareholders during FY24, including $1.6 billion through net share repurchases in Q4. The company also increased its quarterly dividend to $0.70 per share, totaling $2.80 annually, marking the 47th consecutive year of dividend increases.
Strategic and Operational Milestones
Medtronic achieved several significant regulatory approvals and submissions:
- U.S. FDA Approval: Received for the Evolut™ FX+ Transcatheter Aortic Valve Replacement (TAVR) system and the Inceptiv™ closed-loop spinal cord stimulator.
- China NMPA Approval: Granted for the Symplicity Spyral™ renal denervation system.
- FDA Submissions: Filed for the Affera Sphere-9™ ablation catheter and the Simplera Sync™ continuous glucose monitor (CGM).
FY25 Guidance
Looking ahead to fiscal year 2025 (FY25), Medtronic provided the following guidance:
- Organic Revenue Growth: Expected in the range of 4% to 5%. This excludes the impacts of foreign currency exchange and revenue reported as "Other."
- Reported Revenue Growth: Including foreign currency impacts and "Other" revenue, growth is anticipated between 2.4% and 3.7%, assuming current exchange rates remain steady.
- Non-GAAP EPS: Forecasted between $5.40 and $5.50, factoring in an estimated 5% unfavorable impact from foreign currency exchange rates. This projection represents a growth range of 4% to 6% in non-GAAP EPS.
CEO’s Statement
“We are pleased with our Q4 and FY24 performance, which reflects our commitment to driving growth and delivering value to our shareholders,” said Geoff Martha, Chairman and CEO of Medtronic. “The strong operational results and strategic advancements position us well for continued success in FY25 and beyond. Our focus on innovation and operational excellence will drive sustainable growth and enhance patient outcomes worldwide.”
Medtronic's robust financial performance in FY24, highlighted by solid revenue growth, strong cash flows, and strategic product approvals, underscores its position as a leading global medical technology company. The company's outlook for FY25 suggests continued momentum, supported by innovative product offerings and a commitment to shareholder returns.
