01—Abstract
Summary
Summary of the 10-Q filed February 27, 2024. Cited figures are marked; the original filing is the authoritative source.
Medtronic plc reported robust financial performance for the nine months ended January 26, 2024, with net sales increasing by 5% to $23.78 billiona and net income attributable to Medtronic rising by 17% to $3.02 billion.
This growth was driven by strong performance across its key segments, including Cardiovascular, Neuroscience, Medical Surgical, and Diabetes. The company also demonstrated healthy operational cash flow, generating $4.01 billionb for the nine-month period, a significant increase from the prior year.
Looking ahead, Medtronic continues to focus on innovation and strategic growth initiatives, including new product launches and expanding its market presence globally. The company remains committed to returning value to shareholders through share repurchases and dividends, while maintaining a strong financial position to fund future investments and navigate market dynamics.
02—Key points
Key Highlights
- Net sales increased by 5% to $23.78 billion for the nine months ended January 26, 2024, compared to $22.68 billion in the prior year.
- Net income attributable to Medtronic grew by 17% to $3.02 billion for the nine months ended January 26, 2024, compared to $2.58 billion in the prior year.
- Diluted earnings per share increased to $2.27 for the nine months ended January 26, 2024, up from $1.94 in the prior year.
- Operating cash flow improved significantly, reaching $4.01 billion for the nine months ended January 26, 2024, up from $3.58 billion in the prior year.
- The Cardiovascular segment showed strong growth with net sales up 6% to $8.70 billion for the nine months, driven by Micra, TAVR, and Perfusion.
- The Diabetes segment experienced robust growth, with net sales up 10% to $1.83 billion for the nine months, driven by international expansion of the MiniMed 780G insulin pump system.
- Medtronic announced a subsequent event to exit its ventilator product line, expecting to record a pre-tax charge of $350 million to $425 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Medtronic plc kept $0.17.
- Revenue$8.09B100.0%
- Cost of revenue−$2.78B34.4%
- Gross profit$5.31B65.6%
- Operating costs−$3.82B47.3%
- Operating income$1.48B18.3%
- Interest, other & tax−$146.0M1.8%
- Net income$1.34B16.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed February 27, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $8.09B$7.73B | +4.7% |
| Cost of Revenue | $2.78B$2.69B | +3.5% |
| Gross Profit | $5.31B$5.04B | +5.3% |
| SG&A Expenses | $2.67B$2.62B | +2.2% |
| Operating Income | $1.48B$1.39B | +6.5% |
| Interest Expense | $188.00M$167.00M | +12.6% |
| Net Income | $1.34B$1.23B | +8.8% |
| EPS (Basic) | $0.99$0.92 | +7.6% |
| EPS (Diluted) | $0.99$0.92 | +7.6% |
| Shares Outstanding (Basic) | 1.33B1.33B | 0.0% |
| Shares Outstanding (Diluted) | 1.33B1.33B | 0.0% |
05—Questions
Frequently Asked Questions
What is Medtronic's revenue performance for the reported period?
For the nine months ended January 26, 2024, Medtronic reported net sales of $23.78 billion, representing a 5% increase compared to $22.68 billion for the same period in the prior year. For the three months ended January 26, 2024, net sales were $8.09 billion, up 5% from $7.73 billion in the prior year's comparable period.
How did Medtronic's profitability fare in this period?
Net income attributable to Medtronic for the nine months ended January 26, 2024, increased by 17% to $3.02 billion, up from $2.58 billion in the prior year. Diluted earnings per share rose to $2.27 from $1.94. For the three-month period, net income attributable to Medtronic was $1.32 billion, an increase of 8% from $1.22 billion in the prior year, with diluted EPS at $0.99.
What is the company's cash flow situation?
Medtronic demonstrated strong operating cash flow, generating $4.01 billion for the nine months ended January 26, 2024, an increase from $3.58 billion in the prior year. Free cash flow for the nine-month period was $2.85 billion, up from $2.50 billion in the prior year.
Are there any significant subsequent events or strategic changes mentioned?
Yes, Medtronic announced a subsequent event decision to exit its ventilator product line. The company expects to record an estimated pre-tax charge of $350 million to $425 million, primarily related to non-cash impairment of long-lived intangible assets, with the majority expected in the quarter ending April 26, 2024. They will continue to honor existing ventilator contracts.
06—Continue