Q2 2024 Earnings Summary
Reported on Nov 21, 2023 (Before Market Open)
Pre-Earnings Price$75.16Last close (Nov 20, 2023)
Post-Earnings Price$77.55Open (Nov 21, 2023)
Price Change
$2.39(+3.18%)
- Medtronic has received approvals for significant new products (EV-ICD, PFA, and Ardian), which are differentiated products in large and growing markets, expected to drive durable mid-single-digit revenue growth.
- The company has a strong innovation pipeline, including the Hugo surgical robot and Evolut FX, with numerous product approvals launching globally, contributing to growth acceleration into next fiscal year and beyond.
- Medtronic does not expect GLP-1 drugs to impact its growth outlook even in the long term, based on extensive analysis, ensuring continued confidence in their business projections.
- Margin pressures due to higher-than-historical inflation, currency headwinds from a strong U.S. dollar, and potential global tax reform may negatively impact Medtronic's earnings despite management's efforts to offset these challenges.
- Reimbursement challenges for new products like Ardian could slow adoption and limit future revenue growth, as reimbursement is critical and still being established with Medicare and private payers.
- The increasing use of GLP-1 weight loss drugs may impact Medtronic's cardiovascular procedure volumes, and while management believes the effect will be negligible, widespread adoption could reduce the number of cardiovascular events requiring Medtronic's devices.
Research analysts covering Medtronic.