Product innovation driving growth across diversified health tech portfolio, including Automated Insulin Delivery, Transcatheter Aortic Valve Replacement, Pulsed Field Cardiac Ablation, Pain Stimulation, and Deep Brain Stimulation
GALWAY, Ireland, Aug. 20, 2024 /PRNewswire/ -- Medtronic plc (NYSE:MDT) today announced financial results for its first quarter (Q1) of fiscal year 2025 (FY25), which ended July 26, 2024.
Key Highlights
Revenue of $7.9 billion, adjusted revenue of $8.0 billion, increased 2.8% as reported and 5.3% organic
GAAP diluted earnings per share (EPS) of $0.80; non-GAAP diluted EPS of $1.23
Company increases FY25 organic revenue growth and EPS guidance
Multiple franchises delivering, with growth acceleration in Cardiac Ablation Solutions and Neuromodulation and continued strength in Spine, Structural Heart, and Diabetes
Financial ResultsMedtronic reported Q1 worldwide revenue of $7.915 billion and adjusted revenue of $8.004 billion, an increase of 2.8% as reported and 5.3% on an organic basis. Organic revenue growth comparison excludes:
Other revenue of -$52 million in the current year and $50 million in the prior year; and
Foreign currency translation of -$90 million on the remaining segments.
As reported, Q1 GAAP net income and diluted earnings per share (EPS) were $1.042 billion and $0.80, respectively, representing increases of 32% and 36%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.592 billion and $1.23, respectively, representing flat results and an increase of 3%, respectively. Included in Q1 non-GAAP diluted EPS was a -6 cent impact from foreign currency translation. Non-GAAP diluted EPS grew 8% on a constant currency basis.
"We executed, exceeded our commitments, and delivered another good quarter. Our underlying markets are healthy, we're driving operating rigor, and new product innovation is fueling diversified growth across key health tech markets," said Geoff Martha, Medtronic chairman and chief executive officer. "As we deliver innovation and execute on our transformation, we expect this to translate into strong returns for our shareholders."
Cardiovascular PortfolioThe Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $3.007 billion increased 5.5% as reported and 6.9% organic, with high-single digit increases in CRHF and SHA, and a mid-single digit increase in CPV, all on an organic basis.
CRHF results included high-single digit growth in Cardiac Rhythm Management, driven by high-single digit growth in Defibrillation Solutions and low-double digit growth in Cardiac Pacing Therapies, including low-20s growth in Micra™ transcatheter pacing systems; Cardiac Ablation Solutions grew mid-single digits on strong growth of the PulseSelect™ pulsed field ablation (PFA) system
SHA results driven by low-double digit Cardiac Surgery and high-single digit Structural Heart growth, excluding Congenital
CPV delivered high-single digit Coronary growth with strength in guide catheters and balloons; Peripheral Vascular Health grew low-single digits, with high-single digit growth in drug-coated balloons and low-single digit growth in endoVenous products
Evolut™ FX+ TAVR system limited U.S. commercial release initiated during the quarter; full market release now underway
Neuroscience PortfolioThe Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.317 billion increased 4.4% as reported and 5.3% organic, with a low-double digits increase in Neuromodulation, a mid-single digit increase in CST, and a low-single digit increase in Specialty Therapies, all on an organic basis.
CST performance driven by continued adoption of the AiBLE™ ecosystem of spine implants and enabling technology, with high-single digit growth in both Core Spine and Biologics
Specialty Therapies results driven by mid-single digit growth in Neurovascular with continued strength in hemorrhagic stroke products; Pelvic Health increased low-single digits on continued adoption of the InterStim X™ system; ENT grew low-single digits on strength in capital and localized drug delivery sinus implants
Neuromodulation drove above market performance, with mid-teens growth in Brain Modulation on the continued launch of the Percept™ RC deep brain stimulator (DBS) with BrainSense™ technology; Pain Therapies grew high-single digits, including low-double digit growth in Pain Stim on the U.S. launch of the Inceptiv™ spinal cord stimulator
Medical Surgical PortfolioThe Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Acute Care & Monitoring (ACM) divisions. Revenue of $1.996 billion decreased 0.4% as reported and increased 1.0% organic, with a low-single digit increase in SE and flat result in ACM, both on an organic basis.
SE results included low-single digit growth in both Advanced Surgical Technologies and General Surgical Technologies, and low-single digit growth in Endoscopy, driven by strength in Endoflip™ and GI Genius™ sales
ACM performance included low-single digit growth in Blood Oxygen Management
DiabetesRevenue of $647 million increased 11.8% as reported and 12.6% organic.
U.S. revenue grew mid-teens on the continued adoption of the MiniMed™ 780G automated insulin delivery (AID) system, including low-thirties CGM growth driven by very high CGM attachment, high-single digit pump growth, and a return to growth in consumables
International revenue grew low-double digits on increasing CGM attachment rates and the continued roll-out of Simplera Sync™
Received FDA approval of Simplera™ CGM and announced global partnership with Abbott to complement future Medtronic integrated CGM offerings
GuidanceThe company today raised its FY25 revenue growth and EPS guidance.
The company raised its FY25 organic revenue growth guidance to 4.5% to 5% versus the prior range of 4% to 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, FY25 revenue growth on an adjusted basis would be in the range of 3.4% to 4.3%.
The company raised its FY25 diluted non-GAAP EPS guidance to the new range of $5.42 to $5.50 versus the prior $5.40 to $5.50. This includes an estimated -5% impact from foreign currency exchange based on recent rates, unchanged from the prior guidance. The company's guidance represents FY25 diluted non-GAAP EPS growth in the range of 4 to 6%.
"Overall revenue outperformance flowed through to the bottom line, with adjusted EPS ahead of expectations," said Gary Corona, Medtronic interim chief financial officer. "We're raising our guidance today as we expect to sustain growth from new product introductions, continue to make the investments to support those launches, and deliver on our commitment to restore earnings power."
Video Webcast InformationMedtronic will host a video webcast today, August 20, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Events icon at investorrelations.medtronic.com.
Medtronic plans to report its FY25 second, third, and fourth quarter results on November 19, 2024, February 18, 2025, and Wednesday, May 21, 2025, respectively. Confirmation and additional details will be provided closer to the specific event.
Financial Schedules and Earnings PresentationThe first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.
MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY25
FY24
Growth
Currency Impact(3)
Adjusted FY25(4)
Adjusted FY24(4)
Growth
Cardiovascular
$ 3,007
$ 2,850
5.5 %
$ (39)
$ 3,046
$ 2,850
6.9 %
Cardiac Rhythm & Heart Failure
1,535
1,446
6.2
(19)
1,555
1,446
7.5
Structural Heart & Aortic
856
814
5.1
(12)
868
814
6.6
Coronary & Peripheral Vascular
616
589
4.5
(8)
624
589
5.8
Neuroscience
2,317
2,219
4.4
(18)
2,336
2,219
5.3
Cranial & Spinal Technologies
1,147
1,103
4.0
(9)
1,156
1,103
4.8
Specialty Therapies
713
695
2.5
(7)
719
695
3.4
Neuromodulation
457
420
8.9
(3)
460
420
9.6
Medical Surgical
1,996
2,005
(0.4)
(29)
2,024
2,005
1.0
Surgical & Endoscopy
1,544
1,546
(0.1)
(22)
1,566
1,546
1.3
Acute Care & Monitoring
452
459
(1.5)
(6)
458
459
(0.1)
Diabetes
647
578
11.8
(4)
651
578
12.6
Total Reportable Segments
7,967
7,652
4.1
(90)
8,057
7,652
5.3
Other(2)
(52)
50
(203.7)
(2)
—
—
—
TOTAL
$ 7,915
$ 7,702
2.8 %
$ (93)
$ 8,057
$ 7,652
5.3 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, and specifically for the first quarter of fiscal year 2025, incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.
(3)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(4)
The three months ended July 26, 2024 excludes $142 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $38 million of inorganic revenue related to the transition activity noted in (2), and $90 million of unfavorable currency impact on the remaining segments. The three months ended July 28, 2023 excludes $50 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
U.S.(1)(2) REVENUE
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY25
FY24
Growth
AdjustedFY25
AdjustedFY24
Growth
Cardiovascular
$ 1,403
$ 1,350
3.9 %
$ 1,403
$ 1,350
3.9 %
Cardiac Rhythm & Heart Failure
766
720
6.4
766
720
6.4
Structural Heart & Aortic
368
357
3.3
368
357
3.3
Coronary & Peripheral Vascular
268
273
(1.6)
268
273
(1.6)
Neuroscience
1,565
1,497
4.5
1,565
1,497
4.5
Cranial & Spinal Technologies
855
821
4.2
855
821
4.2
Specialty Therapies
398
392
1.5
398
392
1.5
Neuromodulation
312
284
9.8
312
284
9.8
Medical Surgical
881
867
1.6
881
867
1.6
Surgical & Endoscopy
630
619
1.6
630
619
1.6
Acute Care & Monitoring
251
248
1.4
251
248
1.4
Diabetes
215
188
14.3
215
188
14.3
Total Reportable Segments
4,064
3,903
4.1
4,064
3,903
4.1
Other(3)
18
22
(15.6)
—
—
—
TOTAL
$ 4,082
$ 3,924
4.0 %
$ 4,064
$ 3,903
4.1 %
(1)
U.S. includes the United States and U.S. territories.
(2)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(3)
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.
MEDTRONIC PLC
INTERNATIONAL REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY25
FY24
Growth
CurrencyImpact(3)
Adjusted FY25(4)
AdjustedFY24(4)
Growth
Cardiovascular
$ 1,604
$ 1,500
