On Tuesday, November 21, 2023, medical devices supplier Medtronic (MDT) reversed previous quarterly disappointments in its fiscal Q2/2024 report. It earned $1.25 a share (non-GAAP) on revenue of $8 billion, up 5.4% Y/Y. More importantly, Medtronic raised its FY 2024 revenue growth guidance to 4.75%, up from 4.5% previously.
Medtronic benefited from the diabetes segment contributing to $610 million in revenue. The markets incorrectly thought that obesity drug strength would hurt results.
In retail, Abercrombie & Fitch (ANF) posted strong revenue growth of 20.4% Y/Y, or $1.06 billion. It expects net sales to grow by 12% to 14%. ANF stock fell by 7.0%, likely due to selling on the news.
Electronics retailer Best Buy (BBY) posted non-GAAP EPS of $1.29. Revenue fell by 7.8% Y/Y to $9.76 billion. Its FY 2024 revenue guidance benefits from an extra week (53 weeks). Revenue of $43.1 billion to $43.7 billion is below its previous guidance of $43.8 billion to $44.5 billion.
The firm lowered its capital expenditure to $825 million, down from $850 million.
Management is too cautious about its outlook The holiday quarter has uncertainty from uneven consumer demand. Still, shoppers are potentially willing to stretch their credit limits. This would send BBY stock higher.