Why Medtronic stock soared today

stock Medtronic (MDT 1.69%) After rising as much as 3.3% Tuesday morning, the medical device company closed around 1.7% after reporting strong fiscal third-quarter results and impressive forward guidance.

Durable growth driven by Medtronic’s ‘solid execution ability’

In the third quarter of fiscal 2024, which ended Jan. 26, Medtronic’s revenue increased 4.7% year over year (4.6% organically) to $8.089 billion, with approximately flat adjusted (non-GAAP) earnings of $1.728 billion. That translates to $10,000, or $1.30 per share. – The latter includes a negative impact from foreign currency exchange of approximately $0.11 per share. By comparison, most analysts were expecting revenue closer to $7.95 billion and earnings as low as $1.26 per share.

Within Medtronic’s top line, Cardiovascular Portfolio sales increased 6.1% to $2.929 billion, Neuroscience Portfolio sales increased 4.8% to $2.355 billion, and Medical Surgery Portfolio sales increased 3.9% to $2.148 billion. . The company’s diabetes product sales also increased 12.3% to $640 million.

Geoff Martha, Medtronic’s Chairman and CEO, praised the company’s “robust execution” and “continued revenue growth as we expand access to innovative medical technologies (…) globally.”

What’s next for Medtronic investors?

Martha added, “Our recent key product approvals, including innovative products in the diabetes, heart rate management, neuromodulation, hypertension and pulsed field ablation space, increase our confidence that we can drive stable growth in the coming quarters and years.” Yes.

Considering the relative performance of the third quarter of the fiscal year, Medtronic raised its overall outlook for fiscal 2024 to a range of 4.75% to 5% from the previous forecast of 4.75%. Medtronic also raised its adjusted earnings-per-share outlook to $5.19 from $5.13 previously and to $5.21 from $5.19.

In the end, this was a simple beat and raise gig. And Medtronic stock is responding as well.