Medtronic Plc's MDT reported Q4 FY23 sales of $8.54 billion, up 5.6% Y/Y as reported and organic, ahead of expectations, beating the consensus of $8.25 billion.
Q4 revenue growth acceleration was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions.
Medtronic's heart device unit sales increased 12% Y/Y (+6.5% organic) to $3.2 billion.
Spine & neurosurgery product segment sales increased 4.8% Y/Y (+6%) to $2.4 billion.
Diabetes revenue of $595 million decreased by 0.3% (+3%).
The Medical Surgical Portfolio sales decreased 0.3% (+4.8% organic) to $2.22 billion.
The adjusted EPS of $1.57 exceeded the consensus of $1.56.
Dividend: Medtronic has announced a dividend increase to $0.69/share quarterly compared to $0.68 paid in the prior quarter.
Guidance: The company expects FY24 organic revenue growth of 4.5%-4.5%. Currency headwinds could affect FY24 sales by approximately $110-$210 million.
Medtronic expects adjusted EPS of $5.00-$5.10, compared to the consensus of $5.20.
M&A: Medtronic has agreed to acquire Korea-based EOFlow Co Ltd, manufacturer of the EOPatch device — a tubeless, wearable, and fully disposable insulin delivery device.
Upon closing of the transaction, Medtronic will work to integrate the EOPatch device with its next-generation sensor and clinically proven Meal Detection Technology algorithm currently offered in its MiniMed 780G system.
The total consideration would be KRW 971 billion ($738 million). The deal is expected to close in the second half of the calendar year 2023.
The transaction is expected to be less than 1% dilutive to Medtronic's adjusted EPS in each of the first three years and neutral to accretive after that.
Price Action: MDT shares are down 3.95% at $85.03 during the premarket session on the last check Thursday.
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