Medtronic Review Post Q4 Earnings Results

RBC Capital analysts provided a review of Medtronic plc (NYSE:MDT) following the company’s reported Q4 results last week and their meeting with management to get greater clarification on the Q1 outlook, 2023 sales ramp, and color on supply chain disruptions that the company is experiencing.

The company guided to Q1/23 organic sales decline of 4.5-5.5%. The questions the analysts have been fielding from investors are around what the company's underlying growth looks like and what impact of supply disruptions is included in its guidance.

As per their conversation with the company, the analysts note that on a comp-adjusted basis, the company is looking for an organic sales decline of 0.15% in Q1/23 vs. growth of 0.25% in Q4/22, reflecting typical seasonality.

The balance reflects supply headwinds, which management assumes will worsen from Q4 to Q1. The analysts noted that the year-over-year growth looks more challenging as it laps comps of 19.0% underlying growth in the prior year's quarter.

Symbol Price %chg
048260.KQ 1901000 0
287410.KQ 12900 0
085370.KQ 36700 0
043150.KQ 21850 0
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Medtronic Beats Q4, Hikes Dividend, But 2026 Outlook Disappoints

Medtronic (NYSE:MDT) reported better-than-expected fiscal Q4 earnings and revenue, while unveiling plans to spin off its Diabetes business. However, full-year guidance for fiscal 2026 came in below analyst expectations.

For the quarter, the medical device giant posted EPS of $1.62, beating the $1.58 consensus. Revenue rose 3.6% year-over-year to $8.93 billion, topping the $8.82 billion forecast. Adjusted operating margin improved to 27.8%, up from 26.9% a year ago, though slightly shy of estimates. The company also increased its quarterly dividend to $0.71 per share, bringing the annualized payout to $2.84.

Looking ahead, Medtronic expects fiscal 2026 EPS between $5.50 and $5.60, missing the Street’s $5.83 estimate. The company guided for approximately 5% organic revenue growth.

Medtronic's Upcoming Quarterly Earnings: A Glimpse into Financial Health and Market Trends

  • Analysts project an earnings per share (EPS) of $1.58, indicating an 8.2% increase from the previous year.
  • Revenue is expected to reach $8.81 billion, a 2.6% rise from the same quarter last year.
  • Medtronic's stock has historically shown a positive one-day return following earnings announcements in 53% of cases over the past five years.

Medtronic (NYSE:MDT) is a leading global healthcare solutions company that operates in the medical technology sector. It is known for its innovative medical devices and therapies that improve patient outcomes. As Medtronic prepares to release its quarterly earnings on May 21, 2025, investors are keenly observing the company's financial performance and market trends.

Analysts project Medtronic's earnings per share (EPS) to be $1.58, marking an 8.2% increase from the previous year. This growth reflects the company's strong operational performance and strategic initiatives. Revenue is expected to reach $8.81 billion, a 2.6% rise from the same quarter last year, indicating steady growth in its core business areas.

Historically, Medtronic's stock has shown a positive one-day return following earnings announcements in 53% of cases over the past five years. Investors are watching to see if this trend continues, as it could influence the stock's short-term performance. The stability in earnings estimates over the past month suggests confidence in the company's financial health.

Medtronic's cardiovascular portfolio, particularly its Pulse Field Ablation products, contributes to a positive outlook. The company is also making progress in its medical surgical segment, which is expected to improve its gross margin and SG&A. Despite a modest expected dividend increase of less than 2%, Medtronic's robust free cash flow coverage supports its financial stability.

Medtronic's financial metrics provide insight into its market valuation. With a P/E ratio of 26.18 and a price-to-sales ratio of 3.36, the market values its earnings and revenue positively. The company's enterprise value to sales ratio of 4.12 and enterprise value to operating cash flow ratio of 18.77 reflect its overall market worth. Additionally, a debt-to-equity ratio of 0.54 and a current ratio of 1.90 indicate a healthy balance sheet and liquidity position.

Medtronic Plunges 7% After Mixed Q3 Results

Medtronic (NYSE:MDT) reported third-quarter earnings that exceeded analyst expectations, though revenue fell short. As a result, shares dropped more than 7% intra-day today. Despite the mixed results, the medical device maker reaffirmed its full-year guidance, citing continued strength across key business segments.

For the quarter, Medtronic posted adjusted earnings per share of $1.39, surpassing the consensus estimate of $1.36. Revenue reached $8.29 billion, slightly below analysts’ forecasts of $8.33 billion.

Revenue grew 2.5% on a reported basis and 4.1% organically. The company’s Cardiovascular segment recorded 5% organic growth, supported by strong demand for cardiac ablation solutions and structural heart products. Neuroscience delivered 5.2% organic growth, with neuromodulation posting double-digit gains. The Diabetes segment also showed significant improvement, with organic revenue increasing 10.4%, driven by the growing adoption of the MiniMed 780G insulin delivery system in the U.S. and rising international attachment rates for continuous glucose monitoring devices.

Medtronic reiterated its fiscal 2025 outlook, projecting organic revenue growth between 4.75% and 5% and adjusted earnings per share in the range of $5.44 to $5.50. This guidance is compared to the current analyst consensus of $5.45 per share.

Medtronic plc (NYSE: MDT) Surpasses Earnings Estimates

  • Medtronic's EPS of $1.39 exceeded the Zacks Consensus Estimate, showcasing strong financial performance.
  • The company's revenue reached approximately $8.29 billion, with significant growth in the cardiovascular and diabetes segments.
  • Despite a slight decline in shares, Medtronic maintains a positive annual profit forecast, indicating a focus on long-term stability.

Medtronic plc (NYSE: MDT) is a global leader in medical technology, services, and solutions. The company operates in various segments, including cardiovascular, diabetes, and minimally invasive therapies. Medtronic's competitors include companies like Boston Scientific and Abbott Laboratories. On February 18, 2025, Medtronic reported earnings per share (EPS) of $1.39, surpassing the estimated $1.36, showcasing its strong financial performance.

The company's revenue for the quarter was approximately $8.29 billion, slightly below the estimated $8.33 billion. Despite this, Medtronic's earnings per share of $1.39 exceeded the Zacks Consensus Estimate of $1.36, marking an improvement from the previous year's $1.30 per share. This growth was driven by robust demand for its heart and diabetes devices, as highlighted by Zacks.

Medtronic's cardiovascular segment saw a 3.7% increase in sales, reaching $3.04 billion, meeting market expectations. The diabetes segment experienced an 8.4% growth, generating $694 million, surpassing the anticipated $681.8 million. These results reflect the company's strong market position and ability to meet consumer demand in key areas.

Despite the strong performance, Medtronic's shares experienced a 1.4% decline, dropping to $91.49 in premarket trading. The company maintained its annual profit forecast in the range of $5.44 to $5.50 per share, aligning closely with analysts' average estimate of $5.45. This cautious approach indicates Medtronic's focus on long-term stability and growth.

Medtronic's financial metrics provide insights into its valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 27.76 and a price-to-sales ratio of about 3.61, the company is valued favorably by investors. The debt-to-equity ratio of 0.58 and a current ratio of 1.84 suggest a moderate level of debt and a solid ability to cover short-term liabilities.

Medtronic Plunges 7% After Mixed Q3 Results

Medtronic (NYSE:MDT) reported third-quarter earnings that exceeded analyst expectations, though revenue fell short. As a result, shares dropped more than 7% intra-day today. Despite the mixed results, the medical device maker reaffirmed its full-year guidance, citing continued strength across key business segments.

For the quarter, Medtronic posted adjusted earnings per share of $1.39, surpassing the consensus estimate of $1.36. Revenue reached $8.29 billion, slightly below analysts’ forecasts of $8.33 billion.

Revenue grew 2.5% on a reported basis and 4.1% organically. The company’s Cardiovascular segment recorded 5% organic growth, supported by strong demand for cardiac ablation solutions and structural heart products. Neuroscience delivered 5.2% organic growth, with neuromodulation posting double-digit gains. The Diabetes segment also showed significant improvement, with organic revenue increasing 10.4%, driven by the growing adoption of the MiniMed 780G insulin delivery system in the U.S. and rising international attachment rates for continuous glucose monitoring devices.

Medtronic reiterated its fiscal 2025 outlook, projecting organic revenue growth between 4.75% and 5% and adjusted earnings per share in the range of $5.44 to $5.50. This guidance is compared to the current analyst consensus of $5.45 per share.

Medtronic plc (NYSE: MDT) Surpasses Earnings Estimates

  • Medtronic's EPS of $1.39 exceeded the Zacks Consensus Estimate, showcasing strong financial performance.
  • The company's revenue reached approximately $8.29 billion, with significant growth in the cardiovascular and diabetes segments.
  • Despite a slight decline in shares, Medtronic maintains a positive annual profit forecast, indicating a focus on long-term stability.

Medtronic plc (NYSE: MDT) is a global leader in medical technology, services, and solutions. The company operates in various segments, including cardiovascular, diabetes, and minimally invasive therapies. Medtronic's competitors include companies like Boston Scientific and Abbott Laboratories. On February 18, 2025, Medtronic reported earnings per share (EPS) of $1.39, surpassing the estimated $1.36, showcasing its strong financial performance.

The company's revenue for the quarter was approximately $8.29 billion, slightly below the estimated $8.33 billion. Despite this, Medtronic's earnings per share of $1.39 exceeded the Zacks Consensus Estimate of $1.36, marking an improvement from the previous year's $1.30 per share. This growth was driven by robust demand for its heart and diabetes devices, as highlighted by Zacks.

Medtronic's cardiovascular segment saw a 3.7% increase in sales, reaching $3.04 billion, meeting market expectations. The diabetes segment experienced an 8.4% growth, generating $694 million, surpassing the anticipated $681.8 million. These results reflect the company's strong market position and ability to meet consumer demand in key areas.

Despite the strong performance, Medtronic's shares experienced a 1.4% decline, dropping to $91.49 in premarket trading. The company maintained its annual profit forecast in the range of $5.44 to $5.50 per share, aligning closely with analysts' average estimate of $5.45. This cautious approach indicates Medtronic's focus on long-term stability and growth.

Medtronic's financial metrics provide insights into its valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 27.76 and a price-to-sales ratio of about 3.61, the company is valued favorably by investors. The debt-to-equity ratio of 0.58 and a current ratio of 1.84 suggest a moderate level of debt and a solid ability to cover short-term liabilities.

Medtronic's Upcoming Earnings Report: A Financial Overview

  • Medtronic (NYSE:MDT) is expected to report an EPS of $1.36 and revenue of $8.32 billion, indicating year-over-year growth.
  • The company's stock has seen a 6.97% increase over the past month, outperforming the Medical sector and the S&P 500.
  • Medtronic's financial health is solid, with a P/E ratio of 27.57, a debt-to-equity ratio of 0.58, and a current ratio of 1.84.

Medtronic (NYSE:MDT) is a leading global healthcare technology company, known for its innovative medical devices and therapies. As it prepares to release its quarterly earnings on February 18, 2025, investors are closely watching the company's financial performance. Analysts expect an earnings per share (EPS) of $1.36 and revenue of $8.32 billion, reflecting growth from the previous year.

Medtronic's stock recently closed at $92.20, a 0.93% increase from the previous day, though it lagged behind the S&P 500's 1.04% gain. Over the past month, MDT has risen by 6.97%, outperforming the Medical sector's 3.72% gain and the S&P 500's 3.92% increase. This strong performance indicates positive investor sentiment ahead of the earnings report.

The company's anticipated EPS of $1.36 represents a 4.6% increase from the same quarter last year, while projected revenue of $8.33 billion marks a 3% year-over-year growth. Despite a slight 0.7% decrease in earnings estimates over the past three months, Medtronic has a history of surpassing expectations, with an average earnings surprise of 1.99% over the last four quarters.

Medtronic's financial metrics provide further insight into its market valuation. With a price-to-earnings (P/E) ratio of 27.57 and a price-to-sales ratio of 3.58, the market values the company's earnings and revenue favorably. The enterprise value to sales ratio of 4.40 and enterprise value to operating cash flow ratio of 20.18 highlight the company's overall worth and cash flow efficiency.

The company's debt-to-equity ratio of 0.58 indicates a moderate level of debt, while a current ratio of 1.84 suggests strong liquidity. These figures, combined with an earnings yield of 3.63%, demonstrate Medtronic's solid financial health and its ability to manage short-term liabilities effectively. As the earnings release approaches, investors will be keen to see if Medtronic can continue its trend of exceeding expectations.