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CLAIM #40385 · Medtronic PLC (MDT) · 2024Q1 earnings call · Aug 22, 2023 · due Apr 30, 2024

and some of the FX improvement that we saw this quarter, we expect to -- FX to impact us a little bit more in the back half of the year.

Karen Parkhill · CFO

PENDING
graded after results covering Apr 30, 2024 are reported

In context

ou had some reductions in the head count. So as we just try and think about operating margins for this year and going forward, how should we think about how much more there is to come out of SG&A and how much more upside there is in gross margin moving back towards where we were pre-COVID? Thanks a lot. Karen Parkhill: Yeah. Thanks for the question, Robbie. Clearly, we're focused on driving margin expansion and ultimately on the gross margin getting back to pre-COVID levels over time. We saw improved margins this quarter, and we're increasing our full year guidance on gross margin expectations given some of that outperformance. But in Q1, we did have some better-than-expected currency and pricing. And some of that was due to timing with some provincial tenders in China being delayed a bit and some of the FX improvement that we saw this quarter, we expect to -- FX to impact us a little bit more in the back half of the year. So as we think about margins, we are making investments in our global operations and supply chain to drive cost out of the organization. And I mentioned a couple of examples where we're consolidating our suppliers and focused on improvements in our manufacturing operations to drive continued improvement. And over time, we're focused on stabilizing and improving our margins. And so that will continue to impact us on the operating margin line. And on SG&A, as you mentioned, we're focused on continuing to drive leverage in our SG&A line, as you've seen us do for a long period of time. Ryan Weispfenning: Okay. Thank you, Robbie. We’ll take the next question please, Brad. Brad Welnick: The next question comes from Larry Biegelsen at Wells Fargo Securities. Larry, please go ahead. Larry Biegels

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SEC filings for MDT · Claim quote is verbatim from the 2024Q1 earnings call.