Medtronic PLC (NYSE:MDT) shares moved higher in early trade on Tuesday as the medical devices company raised its fiscal 2024 sales and profit guidance.
For the full year ending in April 2024, it expects organic revenue growth of 4.75% over fiscal 2023, up from its prior guidance of 4.5%.
Adjusted earnings per share are expected to be in the range of $5.13 to $5.19, compared to prior guidance of $5.08 to $5.16.
Both figures were higher than Wall Street expectations of year-over-year revenue growth of 2.9% to $32.13 billion and EPS of $5.12.
The company’s 2Q fiscal 2024 results also topped expectations, with revenue rising 5.3% to $8 million, above the expected $7.91 billion.
Adjusted EPS of $1.25 topped estimates of $1.18.
The company benefitted from increased demand for its devices as surgery numbers rise, with it reporting a 7% year-over-year jump in its Medical Surgical segment for 2Q. Cardiovascular revenue grew 5.9% and neuroscience was up 4.7%.
“We are delivering a track record of durable, mid-single digit revenue growth,” Medtronic CEO Geoff Martha commented.
“The underlying fundamentals are strong, and our solid results were broad-based across our businesses and geographies.”
The company’s CFO Karen Parkhill added: “Combining our second-quarter outperformance with our updated tax and foreign currency estimates, we are raising our full-year organic revenue growth and EPS guidance."
Medtronic stock was up 4.1% at US$78.25 shortly after Tuesday’s opening bell.
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