Medtronic Investor Day Broken Down
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.
"Our direction is absolutely clear, our team is behind us, and we're ready to go out there and create value for our shareholders." @MedtronicCEO, Omar Ishrak, at #2018MDTInvestorDay pic.twitter.com/AXRVeKLX5I— Medtronic News (@Medtronic) June 5, 2018
"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.