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Medtronic Investor Day Broken Down

Posted on June 06, 2018

There was mixed reaction to Medtronic's Investor Day with the stock falling 1% after their presentation, but was also met with some bullish sentiment from Jim Cramer

In addition to highlighting Medtronic's future technology, Medtronic CEO, Omar Ishrak, provided specific goals and outlined the company's long-range financial targets, with its primary focus on driving operating leverage and improving its free cash flow conversion. Specifically, to drive sustainable growth and return, the company is providing the following long-range targets:

  • Organic revenue growth of 4%+;
  • Underlying operating margin expansion of 40-50 basis points per year over the planning period;
  • Adjusted earnings per share growth of 8% over the planning period, assuming modest currency volatility;
  • 80% free cash flow conversion within the next 2 to 3 years; and
  • A minimum of 50% of its free cash flow returned to shareholders.

"We are highly focused on creating shareholder value, and that starts with technology. We are leaders in many of the fastest growth markets in our industry, and we continue to invest in the technology of tomorrow that will fuel our long-term growth," said Omar Ishrak, Medtronic chairman and chief executive officer. "We are committed to continuous innovation to stay ahead of our competition, inventing new therapies and markets, and disrupting existing markets. We will be showing technology examples across all of our business groups at today's Investor Day."

As Medtronic provided specific presentations for each of their business units, we have broken these presentations down to help with readability. 

Medtronic CEO, Omar Ishrak, Investor Day Introduction

Medtronic Investor Day - CVG 

Medtronic Investor Day - RTG 

Medtronic Investor Day - MITG

Medtronic Investor Day - Diabetes

Feel free to swing by the Medtronic company forum and share your thoughts.