DUBLIN – Medtronic plc (NYSE:MDT), a global leader in medical technology, services, and solutions, reported its financial results for the fourth quarter (Q4) and fiscal year 2024 (FY24), reflecting modest revenue growth and a continued commitment to shareholder returns through increased dividends.
For Q4, Medtronic's revenue rose to $8.6 billion, a 0.5% increase on a reported basis and a 5.4% increase on an organic basis, which excludes certain items like business separations and foreign currency translation impacts. The company's Q4 GAAP diluted earnings per share (EPS) were $0.49, a decrease from the previous year, while non-GAAP diluted EPS was $1.46.
The FY24 results showed a revenue of $32.4 billion, marking a 3.6% increase as reported and a 5.2% increase organically. The full-year GAAP diluted EPS was $2.76, also down from the previous year, with non-GAAP diluted EPS at $5.20. Medtronic generated a robust $6.8 billion in cash from operations, representing a 12% increase, and free cash flow of $5.2 billion, a 14% increase from FY23.
The company's chairman and CEO, Geoff Martha, noted the broad strength across Medtronic's business segments and optimism for the new fiscal year, fueled by new product cycles and the application of AI across their portfolio.
Medtronic's Cardiovascular Portfolio saw a 2.7% reported increase in FY24 revenue, with organic growth in high-single digits for Structural Heart & Aortic, mid-single digits for Coronary & Peripheral Vascular, and low-single digits for Cardiac Rhythm & Heart Failure.
Neuroscience Portfolio revenues also increased, with high-single digit organic growth in Cranial & Spinal Technologies and mid-single digit increases in both Specialty Therapies and Neuromodulation.
The Medical Surgical Portfolio reported a 5.4% revenue increase, and the Diabetes group saw a 10% increase in revenue for FY24.
Looking ahead, Medtronic provided FY25 guidance, expecting organic revenue growth in the range of 4% to 5%. The company also announced an increase in the quarterly dividend to $0.70 per share, marking the 47th consecutive year of dividend increases.
Medtronic's commitment to returning capital to shareholders was evident as they returned $5.5 billion in FY24, including $1.6 billion through net share repurchases in Q4.
The financial results are based on a press release statement from Medtronic plc.
InvestingPro Insights
Medtronic's latest financials underscore its position as a steady force in the healthcare equipment and supplies sector, with consistent revenue growth and shareholder returns. An InvestingPro Tip highlights that Medtronic (NYSE:MDT) has raised its dividend for 10 consecutive years, reinforcing the company's commitment to shareholder value, a sentiment echoed by the recent announcement of increased quarterly dividends. Furthermore, Medtronic is a prominent player in its industry, which aligns with the company's optimistic outlook for the new fiscal year.
The InvestingPro Data shows Medtronic with a market capitalization of $113.87 billion, indicating its significant presence in the market. The P/E ratio stands at 27.12, suggesting that investors may be expecting higher earnings in the future, although it is trading at a high P/E ratio relative to near-term earnings growth. The company's gross profit margin for the last twelve months as of Q3 2024 is a robust 65.72%, reflecting efficient operations and a strong market position.
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