Q2 2024 Earnings Summary
Reported on Jan 4, 2025 (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.