The board of directors of Medtronic plc (NYSE:MDT) today approved an 8 percent increase in its quarterly cash dividend, raising the quarterly amount to $0.54 per ordinary share. This would translate into an annual amount of $2.16 per ordinary share, or a dividend per share payout ratio of 41 percent of prior fiscal year non-GAAP diluted earnings per share (EPS).
Today’s announcement marks the 42nd consecutive year of an increase in the dividend payment for Medtronic, a constituent of the S&P 500 Dividend Aristocrats index.
Including today’s increase, Medtronic’s dividend per share has grown by 77 percent over the past 5 years and has grown at a 17 percent compounded annual growth rate over the past 42 years.
Revenue of $7.493 billion, an increase of 1.5 percent as reported or 3.5 percent on a constant currency basis, which adjusts for a $146 million negative impact from foreign currency.
GAAP net income and diluted EPS were $864 million and $0.64, respectively.
Non-GAAP net income and non-GAAP diluted EPS were $1.703 billion and $1.26, respectively, increases of 6 percent and 8 percent, respectively.
Revenue of $3.918 billion represented 52 percent of company revenue and increased 1.4 percent as reported.
Guidance
The company today reiterated its revenue growth guidance and raised its EPS guidance for fiscal year 2020.
The company continues to expect revenue growth in its fiscal year 2020 to approximate 4.0 percent on an organic basis. If current exchange rates hold, revenue growth in fiscal year 2020 would be negatively affected by 0.8 to 1.2 percent.
The company increased its fiscal year 2020 diluted non-GAAP EPS guidance from the prior range of $5.44 to $5.50 to the new range of $5.54 to $5.60, including an estimated 10 cent negative impact from foreign exchange based on current rates.
Second quarter worldwide revenue of $7.706 billion, an increase of 3.0 percent as reported or 4.1 percent on an organic basis, which adjusts for a $97 million negative impact from foreign currency and a $16 million contribution from the company’s acquisition of Titan Spine, which is reported in the Spine division in the Restorative Therapies Group.
Second quarter GAAP net income and diluted earnings per share (EPS) were $1.364 billion and $1.01, respectively. Second quarter non-GAAP net income and non-GAAP diluted EPS were $1.777 billion and $1.31, respectively, increases of 7.0 percent and 7.4 percent, respectively. Adjusting for a negative 2 cent impact from foreign currency, second quarter non-GAAP diluted EPS increased 9.0 percent.
Cash Flow from Operations of $1.9 Billion Grew 61%; Free Cash Flow of $1.6 Billion Grew 66%
Guidance
The company reiterated its revenue growth guidance and raised its full year EPS guidance for fiscal 2020.
The company continues to expect revenue growth in its fiscal year 2020 to approximate 4.0 percent on an organic basis and for revenue growth to accelerate in the second half relative to the first. If current exchange rates hold, revenue growth in fiscal year 2020 would be negatively affected by 0.8 to 1.2 percent.
The company increased its fiscal year 2020 diluted non-GAAP EPS guidance from the prior range of $5.54 to $5.60 to a new range of $5.57 to $5.63, including an estimated 9 cent negative impact from foreign exchange based on current rates.
Afirmativo. Lo hemos comentado en el hilo de Compras y Ventas de Empresas Británicas, más que nada por proximidad geográfica
"Irish resident companies must withhold tax on dividend payments and other distributions that they make. They must withhold Dividend Withholding Tax (DWT) at the standard rate of tax for the year in which the distribution is made.
The rate of DWT which companies pay directly to Revenue is to increase. The current rate of DWT of 20% is to increase to 25% from 1 January 2020. "
Muchas gracias @miguel_angel_sanz, pero ya que estamos podrías dar tu opinión sobre el análisis, sin entrar a desgranarlo , solo si le parece un análisis bueno, etc
, solo si le parece un análisis bueno, etc
