On May 23, 2024, Medtronic PLC (MDT, Financial) released its 8-K filing detailing the financial results for its fourth quarter (Q4) and fiscal year 2024 (FY24), which ended on April 26, 2024. Medtronic, one of the largest medical-device companies, develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas, with foreign sales accounting for roughly 50% of the company's total sales.
Q4 and FY24 Financial Performance
Medtronic reported Q4 worldwide revenue of $8.589 billion, a slight increase of 0.5% as reported and 5.4% on an organic basis. The company’s organic revenue results reflect broad-based growth across all four segments. Q4 GAAP diluted earnings per share (EPS) were $0.49, while non-GAAP diluted EPS stood at $1.46, surpassing the analyst estimate of $1.07.
For the full fiscal year 2024, Medtronic reported worldwide revenue of $32.364 billion, an increase of 3.6% as reported and 5.2% on an organic basis. FY24 GAAP diluted EPS was $2.76, and non-GAAP diluted EPS was $5.20, both representing decreases of 2% compared to the previous year. However, FY24 cash from operations increased by 12% to $6.787 billion, and free cash flow rose by 14% to $5.200 billion.
Segment Performance
The Cardiovascular Portfolio, which includes Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions, reported FY24 revenue of $11.831 billion, an increase of 2.7% as reported and 5.0% organic. The Neuroscience Portfolio, comprising Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions, saw FY24 revenue of $9.406 billion, up 5.0% as reported and 5.2% organic.
The Medical Surgical Portfolio, including Surgical & Endoscopy (SE) and Acute Care & Monitoring (ACM) divisions, achieved FY24 revenue of $8.417 billion, an increase of 5.4% as reported and 4.7% organic. The Diabetes segment reported FY24 revenue of $2.488 billion, a notable increase of 10.0% as reported and 8.6% organic.
Key Financial Metrics
| Metric | Q4 FY24 | FY24 |
|---|---|---|
| Revenue | $8.589 billion | $32.364 billion |
| GAAP Diluted EPS | $0.49 | $2.76 |
| Non-GAAP Diluted EPS | $1.46 | $5.20 |
| Cash from Operations | - | $6.787 billion |
| Free Cash Flow | - | $5.200 billion |
Dividend Increase and Future Outlook
Medtronic announced a dividend increase to $0.70 per share quarterly, translating to an annual $2.80 per share. This marks the 47th consecutive year of dividend increases, reflecting the company's commitment to returning capital to shareholders. Medtronic also issued FY25 guidance, expecting organic revenue growth in the range of 4% to 5% and diluted non-GAAP EPS in the range of $5.40 to $5.50.
“We delivered a strong finish to the fiscal year, with broad strength across our businesses and each of our four segments posting mid-single digit or higher organic revenue growth,” said Geoff Martha, Medtronic chairman and chief executive officer. “Our momentum is building into the new fiscal year. We’re beginning new product cycles in some of MedTech’s most attractive markets, which is further enhanced as we apply AI across our portfolio. We are very optimistic about what we can achieve in fiscal ’25 and beyond.”
Medtronic's strong finish to FY24 and optimistic outlook for FY25 highlight the company's resilience and strategic positioning in the medical devices and instruments industry. For more detailed insights and financial data, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Medtronic PLC for further details.
