Medtronic sets FY24 outlook below consensus amid macro concerns
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Medtronic (NYSE:MDT) topped Street forecasts with its Q4 FY23 financials on Thursday, and the medical device maker set its FY24 earnings outlook below the consensus highlighting the impact of macro factors like inflation and forex changes on earnings.
FY23 results indicate that the Dublin, Ireland-based company generated $31.2B in revenue and $7.0B in non-GAAP net income with ~1% YoY and ~6% YoY decline, respectively.
According to Medtronic (MDT), the topline includes a $1.4B negative impact from foreign currency translation, and the bottom line reflects the adverse impact from macro headwinds such as foreign currency translation and inflation.
"We've also been taking measures to reduce costs across the company to lessen the impact from macro factors like inflation and currency to our earnings," CFO Karen Parkhill remarked.
However, the company indicated its FY24 organic revenue growth and non-GAAP EPS at 4.0% – 4.5% and $5.00 – $5.10, respectively. The adj. earnings forecast includes ~6% unfavorable forex impact and stands below $5.20 in the consensus.
Meanwhile, despite a $250M negative impact from foreign currency translation, Q4 FY23 revenue improved ~6% YoY to $8.5B as MDT's main subdivisions outperformed in overseas markets.
Cardiovascular revenue rose ~12% YoY to $3.3B, while Neuroscience Portfolio added $2.4B to the topline with ~5% YoY growth. Medical Surgical Portfolio and Diabetes segments added $2.2B and $595M, respectively, indicating flat revenue growth.
Starting June 1, Medtronic (MDT) expects to launch MiniMed™ 780G continuous glucose monitoring system. Alongside the earnings, the company announced a deal to acquire the EOFlow Co. Ltd., a maker of tubeless insulin delivery devices.
Medtronic (MDT) also reported $1.2B and $2.1B in GAAP and non-GAAP net income for the quarter, indicating a ~21% YoY decline and ~3% YoY increase, respectively.