Medtronic Raises Long-range Revenue Growth Outlook

(RTTNews) - Medtronic plc (MDT) said that it raised its long-range annual revenue growth outlook. At its virtual 2020 Investor Day, the company will outline its key drivers to sustainably accelerate revenue growth at or above its weighted average market growth rate or WAMGR.

Medtronic will provide an update on its long-range financial targets. It now expects 5 percent plus annual organic revenue growth, an increase from the prior long-range target of 4 percent plus. It projects 8 percent plus adjusted earnings per share compound annual growth rate over the long range, assuming modest currency volatility. It expects dividend growth in-line with earnings growth.

The company expects its accelerated growth, significant free cash flow generation, balance sheet strength, and disciplined capital allocation strategy will drive strong double-digit total shareholder return.

Medtronic expects that renal denervation will be a $1 billion market by 2026, with the potential to be a $3 billion market by the end of the decade. The company will announce that RDN has been granted Green Channel priority review, which positions it for potential approval in China within a few months of an expected U.S. approval in calendar 2022.