Core Insights - Abbott (ABT) and Medtronic (MDT) are showing strong momentum in 2025 despite macroeconomic challenges, including tariff pressures [1] - Both companies have outperformed the S&P 500 in 2025, with Abbott shares increasing by 18.8% and Medtronic by 6.5% [4] Abbott Overview - Abbott achieved high single-digit sales growth and double-digit earnings growth in Q1 2025, driven by innovation and expanded biosimilar agreements [3] - The FreeStyle Libre franchise saw nearly 20% organic growth in Q1 2025, indicating strong demand in managing Type 2 diabetes [5] - Abbott's Established Pharmaceuticals segment posted mid-single-digit organic sales growth, primarily from emerging markets [6] - The company generated $2.3 billion in operating cash flow in Q1 2025 and maintained over $6 billion in cash and short-term investments [7] - Abbott increased its quarterly dividend by 7.8%, marking 52 consecutive years of dividend growth, with a payout ratio of 49% [8][10] Medtronic Overview - Medtronic reported 10.9% earnings growth and 5.4% revenue improvement in fiscal 2025, with significant contributions from cardiovascular, neuromodulation, and diabetes segments [2] - The Cardiac Ablation Solutions business grew nearly 30% in Q4, driven by demand for new technologies [13] - Medtronic returned $6.3 billion to shareholders through share repurchases and dividends, with a 48th consecutive year of dividend increases and a payout ratio of 52% [15] - The upcoming spin-off of the Diabetes business is expected to be EPS-accretive and tax-efficient, aimed at unlocking shareholder value [16] Valuation Comparison - Medtronic is trading at a forward price-to-earnings ratio of 14.41X, below its 5-year median of 16.19X, while Abbott is at 24.87X, above its 5-year median of 24.03X [19] - This suggests that Medtronic is more attractively valued compared to Abbott and its historical averages [20] Conclusion - Medtronic presents a more compelling value proposition for investors, with strong fundamentals, a higher payout ratio, and an upcoming business spin-off that could enhance shareholder value [22]

| 思宇年度活动回顾： 首届全球眼科大会 首届全球骨科大会 首届全球心血管大会 | | --- | | 即将召开： | | 2025年6月12日，首届全球医美科技大会 | | 2025年7月17日，第二届全球医疗科技大会 | | 2025年9月4-5日，第三届全球手术机器人大会 | 2025年5月21日，美敦力公布了2025财年第四季度及全年财务业绩，并宣布 计划在未来18个月内将旗下糖尿病业务拆分为独立公司 。此次财报发布之际，公司也面 临潜在的关税政策变化可能带来的成本冲击，管理层在业绩指引中对此作出了说明。 # 财报表现：营 收稳 健增长，现 金流充裕 2025财年 美敦力全年营收达到 335亿美元 ，同比增长3.6%（有机增长4.9%）。 全年归属股东净利润约为 46.6亿美元 ，GAAP摊薄每股收益 3.61美元 ，同比大增 31% 。美敦力的毛利率和盈利能力稳中有升：调整后营业利润率达27.8%，较上年提高0.9个百分点。 | | | | | FOURTH QUARTER | | | | | | | FIS | | --- | --- | --- | --- | --- | --- | --- | ...

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $8.9 billion, growing 5.4% organically, with adjusted EPS of $1.62, up 11% [46][49] - For the full fiscal year 2025, revenue grew 5% organically and EPS grew 6% or 10% on a constant currency basis [50][56] - Adjusted gross margin was 65.1%, down 70 basis points year over year, while adjusted operating margin increased to 27.8%, up 90 basis points [47][49] Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew 8%, with nearly 30% growth in cardiac ablation solutions [6][9] - Neuromodulation and diabetes segments delivered double-digit growth, while cranial and spinal technologies saw high single-digit growth in the US [7][25] - The diabetes business grew 12%, marking the sixth consecutive quarter of double-digit growth [25][26] Market Data and Key Metrics Changes - The US market experienced its strongest quarterly growth in 15 quarters, growing 5% [46] - Japan grew high single digits, while Western Europe and emerging markets grew mid single digits [46] - The company noted strong growth in India, Southeast Asia, and Eastern Europe [46] Company Strategy and Development Direction - The company plans to separate its diabetes business into a standalone public company, which is expected to enhance focus on high-margin growth markets [28][29] - The separation is seen as a strategic move to improve capital allocation and increase growth accretive investments in core businesses [44][45] - The company aims to continue delivering mid single-digit organic revenue growth and accelerating earnings leverage [30][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth drivers, highlighting strong positions in key markets and the potential for continued growth [88][90] - The company anticipates a return to high single-digit EPS growth in fiscal year 2027, driven by strong revenue growth and benefits from the diabetes separation [55][101] - Management emphasized the importance of operational improvements and cost management to enhance profitability [92][95] Other Important Information - The company announced an increase in its dividend for the 48th consecutive year [50] - The new CFO, Thierry Piéton, emphasized the focus on enhancing operations and driving value creation [39][42] - The company is investing significantly in R&D for the first time in four years, planning to grow R&D faster than revenue [53][92] Q&A Session Questions and Answers Question: Guidance philosophy with the new CFO - The company is bullish on growth drivers, with markets growing 7% even without diabetes, and expects strong contributions from key portfolios [88][90] Question: EPS growth expectations and below-the-line items - The company anticipates operating profit growth around 7%, despite pressures from tax and interest expenses [92][93] Question: Impact of tariffs and diabetes business separation - The impact of tariffs is expected to be between $200 million to $350 million, while the diabetes business separation is projected to be immediately accretive to EPS [106][101]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $8.9 billion, representing a 5.4% organic growth year-over-year, with adjusted EPS of $1.62, up 11% [46][50]. - For the full fiscal year 2025, revenue grew 5% organically, and EPS increased by 6% or 10% on a constant currency basis [50][56]. - The adjusted gross margin was 65.1%, down 70 basis points year-over-year, while the adjusted operating margin increased by 90 basis points to 27.8% [47][49]. Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew 8%, with nearly 30% growth in cardiac ablation solutions [4][5]. - Neuromodulation and diabetes segments delivered double-digit growth, while cranial and spinal technologies saw high single-digit growth in the U.S. [5][24]. - The diabetes business grew 12%, marking the sixth consecutive quarter of double-digit growth [24][27]. Market Data and Key Metrics Changes - U.S. revenue growth was 5%, the strongest quarterly growth in 15 quarters, with Japan growing high single digits and Western Europe and emerging markets growing mid-single digits [46][47]. - The company noted strong growth in India, Southeast Asia, and Eastern Europe [47]. Company Strategy and Development Direction - The company announced plans to separate its diabetes business into a standalone public company, which is expected to enhance focus on high-margin growth markets [28][29]. - The strategy aims to increase investments in core businesses with higher margins, allowing for improved capital allocation and growth potential [30][41]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, indicating that growth drivers are gaining momentum [58][60]. - The company expects to continue delivering mid-single-digit organic revenue growth and return to high single-digit EPS growth in fiscal year 2027 following the diabetes separation [56][59]. Other Important Information - The company plans to increase R&D investments for the first time in four years, aiming to grow R&D faster than revenue [52][54]. - The adjusted tax rate is expected to rise from 16.7% to about 18% due to changes in tax regulations [54][91]. Q&A Session Summary Question: Guidance philosophy with the new CFO - Management is optimistic about growth drivers, with markets growing 7% even without diabetes, and expects strong positions in key markets [86][87]. Question: Clarification on EPS growth expectations - EPS growth is expected to be high single digits in fiscal year 2027, even without the benefits from the diabetes separation, as growth drivers remain strong [98][99]. Question: Impact of tariffs and diabetes business on margins - The impact of tariffs is estimated to be between $200 million to $350 million, affecting gross margins, while the rollout of new diabetes products is expected to pressure margins initially [105][106].

Company Performance - Medtronic reported quarterly earnings of $1.62 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and up from $1.46 per share a year ago, representing an earnings surprise of 2.53% [1] - The company posted revenues of $8.93 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.08%, compared to $8.59 billion in the same quarter last year [2] - Over the last four quarters, Medtronic has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Medtronic shares have increased approximately 8.1% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $8.35 billion, and for the current fiscal year, it is $5.82 on revenues of $35.05 billion [7] - The outlook for the Medical - Products industry is currently in the bottom 43% of over 250 Zacks industries, which may impact stock performance [8]

Q4 FY25 Earnings Presentation May 21, 2025 Contact: investor.relations@medtronic.com Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade ...

Financial Performance - Q4 revenue reached $8.9 billion, a 3.9% increase as reported and 5.4% organic growth[3] - Q4 GAAP diluted EPS was $0.82, up 67%, while non-GAAP diluted EPS increased 11% to $1.62[3] - FY25 revenue totaled $33.5 billion, reflecting a 3.6% increase as reported and 4.9% organic growth[5] - FY25 GAAP diluted EPS rose 31% to $3.61, with non-GAAP diluted EPS increasing 6% to $5.49[8] - The company reported a total revenue of $33,537 million for FY25, a 3.6% increase from $32,364 million in FY24[44] - Net income for Q4 FY25 was $1,061 million, up from $659 million in Q4 FY24, marking a significant increase[58] - Basic earnings per share for Q4 FY25 were $0.82, compared to $0.49 in Q4 FY24, indicating strong earnings growth[58] - For the fiscal year ended April 25, 2025, total net sales reached $33,537 million, a 3.61% increase from $32,364 million in the previous fiscal year[69] - The diluted EPS for the fiscal year was $5.49, compared to $5.20 in the previous year, marking a 5.58% increase[69] Segment Performance - The Cardiovascular Portfolio generated FY25 revenue of $12.481 billion, a 5.5% increase as reported and 6.3% organic growth[14] - Cardiovascular segment revenue increased by 6.6% to $3,336 million in the fourth quarter of FY25, with organic growth of 7.8%[44] - Cardiac Rhythm & Heart Failure segment saw a revenue increase of 9.2% to $1,733 million in the fourth quarter, with organic growth of 10.3%[44] - Diabetes segment revenue grew by 10.4% to $728 million in the fourth quarter, with organic growth of 12.0%[44] - Neuroscience segment revenue increased by 2.9% to $2,620 million in the fourth quarter, with organic growth of 3.7%[44] - Cardiovascular segment revenue for FY25 reached $5,804 million, with an organic growth of 3.7% from FY24's $5,597 million[49] - Neuroscience segment reported revenue of $6,713 million for FY25, reflecting a 6.5% increase from FY24's $6,305 million[49] - Diabetes segment revenue grew by 8.3% in FY25, totaling $923 million compared to $852 million in FY24[49] Cash Flow and Shareholder Returns - Q4 cash from operations was $7.0 billion, with free cash flow of $5.2 billion[5] - The company returned $6.3 billion to shareholders in FY25, marking the 48th consecutive year of dividend increases[5] - The company reported a free cash flow of $5,185 million for the fiscal year 2025, slightly down from $5,200 million in 2024[85] Future Guidance - FY26 organic revenue growth is projected at approximately 5%, with reported growth expected between 4.8% and 5.1%[26] - FY26 diluted non-GAAP EPS is guided to be in the range of $5.50 to $5.60, considering potential tariff impacts[28] - The company plans to report its FY26 quarterly results on August 19, November 18, February 17, and May 20, 2026[31] - The company plans to separate its Diabetes business into a standalone public company within 18 months[21] Operational Insights - Medtronic's management emphasizes the importance of non-GAAP financial measures for understanding operational performance and trends[38] - Forward-looking statements indicate potential risks related to competitive factors and economic conditions that may impact future performance[35] - Research and development expenses for FY25 were $2,732 million, slightly down from $2,735 million in FY24[58] Balance Sheet Highlights - Cash and cash equivalents increased to $2,218 million as of April 25, 2025, compared to $1,284 million a year earlier[89] - Total assets rose to $91,680 million as of April 25, 2025, up from $89,981 million on April 26, 2024[89] - Current liabilities increased to $12,879 million from $10,789 million year-over-year[89] - Long-term debt increased to $25,642 million from $23,932 million in the previous year[89] - The company experienced a net income of $4,691 million for the fiscal year 2025, compared to $3,705 million in 2024[91] - The company recognized $151 million of accelerated amortization on certain intangible assets related to product line exits within the Cardiovascular Segment[70]

Core Insights - Medtronic reported strong financial results for Q4 and FY25, with notable growth in key franchises such as Pulsed Field Ablation, TAVR, and Diabetes [1][3][12] Q4 Financial Results - Q4 worldwide revenue reached $8.927 billion, marking a 3.9% increase as reported and 5.4% on an organic basis [6][7] - Q4 GAAP operating profit was $1.436 billion, a 36% increase, with an operating margin of 16.1%, up 380 basis points [6][7] - Non-GAAP diluted EPS for Q4 was $1.62, an 11% increase, while GAAP diluted EPS was $0.82, up 67% [7][8] FY25 Financial Results - FY25 worldwide revenue totaled $33.537 billion, a 3.6% increase as reported and 4.9% on an organic basis [9][10] - FY25 GAAP operating profit was $5.955 billion, a 16% increase, with an operating margin of 17.8%, up 190 basis points [9][10] - Non-GAAP diluted EPS for FY25 was $5.49, a 6% increase, while GAAP diluted EPS was $3.61, up 31% [10] Key Business Segments - The Cardiovascular Portfolio generated FY25 revenue of $12.481 billion, a 5.5% increase as reported and 6.3% organic [13] - The Neuroscience Portfolio reported FY25 revenue of $9.846 billion, a 4.7% increase reported and 5.2% organic [14] - The Medical Surgical Portfolio had FY25 revenue of $8.407 billion, showing a slight decrease of 0.1% reported but an increase of 0.8% organic [15] Diabetes Business Separation - Medtronic announced plans to separate its Diabetes business into a standalone public company, expected to be completed within 18 months [19] Dividend Increase - The company declared a dividend increase to $0.71 per share for Q1 FY26, marking the 48th consecutive year of dividend increases [22] Guidance for FY26 - Medtronic anticipates FY26 organic revenue growth of approximately 5%, with diluted non-GAAP EPS growth expected to be around 4% [23][24]

Core Insights - Medtronic plans to separate its Diabetes business into a new standalone company, enhancing focus on high-margin growth areas and simplifying its portfolio [1][2][3] - The separation is expected to be completed within 18 months, primarily through an initial public offering (IPO) and subsequent split-off, aimed at unlocking value for shareholders [2][9] - The Diabetes business currently represents 8% of Medtronic's revenue and 4% of its segment operating profit for fiscal year 2025, with anticipated improvements in gross and operating margins post-separation [7] Medtronic's Strategy - Post-separation, Medtronic will concentrate on innovation-driven growth and category leadership in healthcare systems, leveraging its core competencies [3][6] - The company is focusing on its highest profitable growth drivers, including advancements in its innovation pipeline and product launches [3][4] - Medtronic expects durable, mid-single digit or higher organic revenue growth and enhanced earnings leverage following the separation [3] New Diabetes Company - The New Diabetes Company will be a leading direct-to-consumer business, uniquely positioned to offer a complete ecosystem for intensive insulin management [4][5] - The separation will allow for more focused investment in the New Diabetes Company's pipeline and manufacturing capabilities, driving margin expansion over time [4][7] - Que Dallara, the current EVP and president of Medtronic Diabetes, will become the CEO of the New Diabetes Company [5] Financial Implications - The separation is projected to improve Medtronic's adjusted gross margin by approximately 50 basis points and adjusted operating margins by about 100 basis points, with immediate accretion to adjusted EPS [7][8] - The transaction is expected to be tax-free for Medtronic shareholders for U.S. federal income tax purposes, facilitating share retirements without cash reduction [8][9] - Medtronic aims to maintain its dividend per share unchanged pre- and post-transaction, ensuring continued shareholder returns [7]

Core Viewpoint - Medtronic is expected to report earnings on May 21, 2025, with consensus estimates indicating earnings per share of $1.58 and revenues of $8.82 billion, showing growth compared to the previous year's earnings of $1.46 per share and revenues of $8.59 billion [2][3] Financial Performance - Medtronic has a market capitalization of $110 billion and generated $33 billion in revenue over the last twelve months, with an operating profit of $6.0 billion and a net income of $4.3 billion [3] Historical Earnings Trends - Over the past five years, Medtronic's stock has shown a favorable one-day return following earnings announcements in 53% of instances, with a median return of 2.5% and a maximum of 4.6% [1][8] - In the last three years, the percentage of positive one-day returns has declined to 42%, with the median of positive returns at 2.5% and negative returns at -4.5% [8] Trading Strategies - Traders can utilize historical trends to position themselves before and after earnings announcements, assessing the likelihood of positive or negative responses [7] - A strategy involves analyzing the correlation between short-term and medium-term returns post-earnings to inform trading decisions [5][6]