Shares of Medtronic (MDT 0.62%) climbed as much as 3.3% early Tuesday, and then settled to close up around 1.7%, after the medical-device company announced strong fiscal third-quarter results and impressive forward guidance.
On Medtronic's "solid execution," durable growth
For its fiscal third-quarter 2024, ended Jan. 26, Medtronic's revenue grew 4.7% year over year (4.6% organically) to $8.089 billion, translating to roughly flat adjusted (non-GAAP) earnings of $1.728 billion, or $1.30 per share -- though the latter included a roughly $0.11-per-share negative impact from foreign currency exchange. By comparison, most analysts were modeling lower earnings of $1.26 per share on revenue closer to $7.95 billion.
Within Medtronic's top line, Cardiovascular Portfolio revenue grew 6.1% to $2.929 billion, Neuroscience Portfolio sales were up 4.8% to $2.355 billion, and Medical Surgical Portfolio revenue rose 3.9% to $2.148 billion. The company's diabetes products also saw sales jump 12.3% to $640 million.
Medtronic Chairman and CEO Geoff Martha lauded the company's "solid execution" and "durable revenue growth [...] as we expand access to our innovative healthcare technologies across the globe."
What's next for Medtronic investors?
"Our recent major product approvals -- including transformative products in the diabetes, cardiac rhythm management, neuromodulation, hypertension, and pulsed field ablation spaces -- increase our confidence in driving reliable growth over the coming quarters and years," Martha added.
Given its relative outperformance in fiscal Q3, Medtronic raised its full fiscal-year 2024 outlook to call for organic revenue growth in the range of 4.75% to 5%, up from its previous outlook for 4.75%. Medtronic also increased its full-year outlook for adjusted earnings per share to be in the range of $5.19 to $5.21, up from $5.13 to $5.19 before.
In the end, this was a straightforward beat-and-raise performance. And Medtronic stock is responding in kind.
