While announcing weak profit and higher revenues in its first quarter, healthcare technology company Medtronic plc (MDT) on Tuesday raised its fiscal 2024 revenue growth and earnings per share guidance above market.
For the year, the company now expects adjusted earnings per share in the new range of $5.08 to $5.16, a 7 cent increase at the midpoint from the previous outlook of $5.00 to $5.10.
On average, 32 analysts polled by Thomson Reuters expect earnings of $5.05 per share for the year. Analysts’ estimates typically exclude special items.
The new outlook is inline with the company’s operational earnings per share outperformance in the first quarter.
Further, organic revenue growth is now expected to be 4.5 percent versus the prior range of 4.0 percent to 4.5 percent. The full-year revenue growth on a reported basis would be approximately 2.75 percent.
Karen Parkhill, Medtronic EVP & chief financial officer, said, “Our revenue outperformance and focus on expense management drove operating margin expansion and mid-single digit adjusted earnings growth this quarter. Given our first quarter performance, including a 7 cent operational beat on the bottom line, and improved fundamentals, we’re raising our full year organic revenue growth and EPS guidance.”
In the first quarter, Medtronic’s earnings decreased from last year but beat the Street estimates. The company’s earnings totaled $791 million, or $0.59 per share, compared to $929 million, or $0.70 per share, in last year’s first quarter.
Adjusted earnings were $1.60 billion or $1.20 per share for the period, compared to $1.50 billion or $1.13 per share a year ago.
Analysts expected the company to earn $1.11 per share for the quarter.
The company’s revenue for the quarter rose 4.5 percent to $7.70 billion from $7.37 billion last year. Analysts expected $7.57 billion in revenues for the quarter.
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