What happened
Tuesday was a fine day to be a Medtronic (MDT 0.62%) investor. The company's performance in its inaugural quarter of fiscal 2024 was better than expected, and the market rewarded Medtronic shares with a 3% bump in price. That was more than 3 times the percentage increase of the S&P 500 index.
So what
For its first quarter, Medtronic managed to grow its revenue by nearly 5% on a year-over-year basis to $7.7 billion. Non-GAAP (adjusted) net income rose at a slightly higher rate, advancing by 6% to land at slightly under $1.6 billion, or $1.20 per share.
Analysts tracking the medical device maker were underestimating its potential. On average, they were anticipating Medtronic would earn less than $7.6 billion in revenue and post an adjusted net income figure of $1.11.
In its earnings release, Medtronic wrote that its improved numbers "reflect broad strength across businesses and geographies, driven by execution, innovation, and improved underlying fundamentals."
The performance of its four business segments buttresses this assertion. Each posted sales growth of around 6%. Of the four, cardiovascular remained the largest in top-line terms; it brought in $2.85 billion in revenue during the period.
Now what
In addition to beating on revenue and profitability, Medtronic proffered full-year 2024 guidance that was also higher than analyst expectations. The company believes its revenue will rise by nearly 3% over the fiscal 2023 level. Meanwhile, it raised its forecast for adjusted net profit -- it's now modeling $5.08 to $5.16 per share. Previously, it had guided for $5 to $5.10.
