By Senad Karaahmetovic
Medtronic (NYSE:MDT) reported better-than-expected results for its first fiscal quarter. The medical device company reported revenue of $7.37 billion to beat the $7.21 billion consensus.
Adjusted earnings per share were reported at $1.13 to again beat the $1.12 estimate. Adjusted gross and operating margins came in slightly weaker than expected.
Medtronic reaffirmed its full-year guidance that calls for organic revenue growth between +4% to +5%. The adjusted EPS is still seen between $5.53 to $5.65
“Looking ahead, we expect organic revenue growth to improve each quarter, with the second half of the fiscal year much stronger than the first,” said Karen Parkhill, Medtronic's Chief Financial Officer.
Medtronic also noted easing supply chain challenges.
“We think MDT’s F1Q organic rev beat is a positive --- granted, it was on a very conservatively guided F1Q expectation/CNS forecast and expectations continue to be low for MDT,” a Truist analyst said in a note.
A Stifel analyst added that “the unchanged sales growth guidance suggests to us that the company’s expected rest-of-year gradual revenue acceleration outlook is on track.”