Medtronic (NYSE:MDT) shares rose 4.25% after the medical device maker reported third-quarter earnings that topped analyst estimates and raised its revenue and earnings guidance for fiscal year 2024. The company's adjusted EPS of $1.30 was $0.04 higher than the consensus estimate of $1.26, while revenue for the quarter came in at $8.1 billion, surpassing the $7.95 billion expected by analysts.
The reported revenue marked a 4.7% increase on a reported basis and a 4.6% rise on an organic basis compared to the same quarter last year. The organic revenue growth was attributed to strong performance in Diabetes, Core Spine, Cardiac Surgery, Structural Heart, and Cardiac Pacing, as well as robust international market sales. Medtronic's GAAP net income and diluted EPS both saw an 8% increase YoY.
Medtronic's chairman and CEO, Geoff Martha, commented on the results, "We're building momentum, with another quarter of solid execution on our commitments. We continue to deliver durable revenue growth, with particular strength in multiple businesses, as well as in international markets as we expand access to our innovative healthcare technologies around the globe."
Looking ahead, Medtronic raised its FY24 organic revenue growth guidance from a previous 4.75% to a new range of 4.75% to 5%. The updated guidance excludes the impact of foreign currency and revenue related to business separations. Including these factors, the company anticipates FY24 revenue growth on a reported basis could be between 2.9% and 3.3%. The company also increased its FY24 adjusted EPS guidance from a prior range of $5.13 to $5.19 to a new range of $5.19 to $5.21, reflecting a 4 cent increase at the midpoint due to third-quarter performance.
The positive market response underscores investor confidence in Medtronic's growth trajectory and its ability to outperform expectations. The company's recent major product approvals across various healthcare segments further bolster this outlook.