Medtronic (NYSE:MDT), a global leader in medical technology, services, and solutions, reported its earnings for the fourth quarter of fiscal year 2024 on Thursd

Medtronic's Earnings Overview for Q4 Fiscal Year 2024


blog post cover photo

Image credit: Google Images

  • Medtronic exceeded EPS estimates of $1.45, and reported revenue of $8.59 billion, surpassing expectations.
  • The company demonstrated operational efficiency with a 4.5% increase in adjusted earnings per share for the full fiscal year, despite a decrease in adjusted EPS for the quarter.
  • Revenue growth was driven by strong performance across multiple business segments, with significant regulatory approvals highlighting Medtronic's innovation and growth potential.

Medtronic (NYSE:MDT), a global leader in medical technology, services, and solutions, reported its earnings for the fourth quarter of fiscal year 2024 on Thursday, May 23, before the market opened. The company's earnings per share (EPS) of $1.46 slightly surpassed the estimated EPS of $1.45, showcasing Medtronic's ability to exceed analyst expectations. Additionally, Medtronic reported revenue of approximately $8.59 billion, exceeding the estimated revenue of about $8.45 billion. This performance indicates a positive outcome for Medtronic in the recent May earnings report, reflecting the company's resilience and strategic growth initiatives in the face of industry challenges.

Despite facing a decrease of 7.5% in adjusted EPS from the same quarter in the previous year, Medtronic's financial results highlight its operational efficiency and market adaptability. The company's GAAP EPS, which includes various one-time adjustments such as restructuring and associated costs, was significantly lower at 49 cents, down 44.3% from the year-ago quarter. However, for the full fiscal year, Medtronic reported adjusted earnings of $5.53 per share, an increase of 4.5% from the previous year, beating the Zacks Consensus Estimate by 6.3%. This demonstrates Medtronic's ability to navigate through fiscal challenges while still delivering growth.

Medtronic's revenue growth was attributed to strong performance across several of its businesses, including Cranial & Spinal Technologies, Diabetes, Cardiac Pacing, and Surgical. The company's worldwide revenues for the quarter were $8.59 billion, a slight increase of 0.5% on a reported basis and 5.4% on an organic basis from the year-ago period, exceeding the Zacks Consensus Estimate by 1.8%. The total revenues for fiscal 2024 reached $32.36 billion, up 3.6% from the previous year and slightly above the Zacks Consensus Estimate by 0.5%. This revenue growth, coupled with strategic regulatory achievements such as receiving U.S. FDA approval for its Evolut™ FX+ TAVR system and Inceptiv™ closed-loop spinal cord stimulator, underscores Medtronic's broad-based, durable growth across various segments.

Furthermore, Medtronic's financial health is evident in its cash flow from operations for FY24, which was $6.8 billion, a 12% increase from the previous year. The company's free cash flow rose by 14% to $5.2 billion, demonstrating its strong cash generation capabilities. Medtronic has been proactive in returning value to its shareholders, with $5.5 billion returned in FY24, including $1.6 billion through net share repurchases in Q4 alone. The increase in its quarterly dividend to $0.70 per share, marking the 47th consecutive year of dividend increases, reflects Medtronic's commitment to shareholder value and its confidence in the company's financial stability and growth prospects.

In summary, Medtronic's latest earnings report for the fourth quarter of fiscal year 2024 highlights the company's ability to exceed expectations, navigate challenges, and continue its growth trajectory. With strategic investments in innovation, a focus on operational efficiency, and a commitment to returning value to shareholders, Medtronic is well-positioned for sustained success in the healthcare sector.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep