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Medtronic posted adjusted EPS of $1.57 on revenue of $8.54 billion. Analysts were looking for earnings of $1.55 on revenue of $8.25B. The outperformance was driven by the Cardiovascular segment, which saw its sales jump 12% year-over-year.
Medtronic shares are down 3.9% in premarket.
“Our accelerating revenue growth was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions,” said Geoff Martha, Medtronic chairman and chief executive officer.
For FY24, Medtronic sees adjusted EPS at $5.05, below the $5.28 expected. Organic revenue is seen rising 4-4.5% YoY.
The company also said it will acquire wearable insulin patch maker EOFlow.
Deutsche Bank analysts commented:
“Relative to other medtech companies reporting blow-out 1Q revenue results, the 85 bps of organic revenue beat seems a bit disappointing and we wonder if: (1) MDT’s core markets simply didn’t recover as much as other companies; (2) April slowed down. Bulls will point to MDT’s February – April reporting period, hence MDT didn’t have the easy January comps that the others had.”
Stifel analysts weighed in more positively on MDT.
“Stock could react negatively today. But with an improving macro backdrop, key diabetes business approvals achieved, and low growth first half comps, Medtronic could potentially be set up for a meet and exceed F2024 year,” they said.
