Medtronic PLC MDT

Medtronic Earnings: New Product Cycles Should Support Mid-Single-Digit Top-Line Growth

Narrow-moat Medtronic wrapped up its fiscal year with solid fourth-quarter results. With full fiscal year performance hitting very close to our estimates and our projections for fiscal 2025 bounded by management’s outlook, we’re holding steady on our fair value estimate. Reported annual revenue growth of 3.6% nearly hit our projection for 3.7% on the nose. Medtronic slightly exceeded our expectations on cost containment, but this was offset by incrementally higher amortization. The firm continues to see strength from pockets of innovation, including its Micra leadless pacemakers, the 780g insulin pump, and the limited launch of its Simplera Sync continuous glucose monitor in a handful of European countries. With key products approaching or in the early stages of commercialization, we’re more comfortable that Medtronic can maintain its mid-single-digit revenue growth goal.