Medtronic (MDT) reported strong results in the Fiscal first quarter and lifted its annual profit forecast. The medical device company reported adjusted revenue of $8 billion, up by 2.8% year-over-year and 5.3% on an organic basis. This result exceeded consensus estimates of $7.9 billion.
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Additionally, the company reported adjusted earnings of $1.23 per share, up by 3% year-over-year, surpassing analysts’ expectations of $1.20 per share.
Medtronic’s Cardiovascular Business Thrives
Turning to the company’s specific business segments, the cardiovascular business reported revenues of $3 billion in Q1, up by 5.5% year-over-year. This segment provides devices for heart disease surgeries and saw growth across the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions.
In addition, this business comprised more than 35% of MDT’s revenues in the first quarter.
Medtronic Raises FY25 Outlook
Looking ahead, Medtronic raised its FY25 organic revenue growth guidance to 4.5% to 5%, compared to its prior range of 4% to 5%. Additionally, the company increased its diluted adjusted earnings guidance to the new range of $5.42 to $5.50 per share, up from the prior forecast of $5.40 to $5.50 per share.
In this context, Gary Corona, Medtronic’s interim CFO, commented, “We’re raising our guidance today as we expect to sustain growth from new product introductions.”
In other developments, earlier this month, the company received approval in the U.S. for its Simplera all-in-one continuous glucose monitor (CGM). Moreover, it has partnered with Abbott to connect their CGM system with Medtronic’s automated insulin delivery systems. Looking ahead, the company is also eyeing growth in diabetes and devices for heart disease-focused surgeries.
Is MDT a Good Stock to Buy?
Analysts remain sidelined about MDT stock, with a Hold consensus rating based on four Buys, eight Holds, and one Sell. Over the past year, MDT has increased by more than 9%, and the average MDT price target of $92 implies an upside potential of 6.6% from current levels. These analyst ratings are likely to change following MDT’s results today.
