Medtronic To Exit Unprofitable Ventilator Product Line, Boosts Annual Guidance On Strong Demand
Portfolio Pulse from Vandana Singh
Medtronic Plc (NYSE:MDT) reported a 4.7% Y/Y increase in Q3 2024 sales to $8.1 billion, slightly above the consensus of $7.95 billion. The company announced exiting its unprofitable ventilator product line to focus on profitable growth in its newly combined Acute Care and Monitoring unit. Medtronic also raised its FY 2024 sales growth guidance to 4.75%-5% and adjusted EPS guidance to $5.19-$5.21, surpassing previous estimates and consensus. Shares rose 2.82% in premarket trading.
February 20, 2024 | 2:24 pm
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Medtronic reported higher than expected Q3 sales and is exiting its ventilator line to focus on profitable growth, raising FY 2024 guidance.
Medtronic's decision to exit the unprofitable ventilator product line and focus on profitable growth in its Acute Care and Monitoring unit, combined with the raised FY 2024 guidance, indicates a strategic shift towards more lucrative segments. This, along with the reported sales exceeding expectations, is likely to positively impact investor sentiment and the stock price in the short term.
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