Medtronic Double Downgraded at UBS

Medtronic (NYSE:MDT) is a leading global healthcare technology company that specializes in medical devices and therapies. It operates in various segments, including cardiovascular, diabetes, and surgical technologies. Medtronic competes with other major players in the medical device industry, such as Johnson & Johnson and Boston Scientific. The company is known for its innovative products and solutions that improve patient outcomes.

On November 19, 2024, Medtronic reported earnings per share (EPS) of $1.26, slightly surpassing the estimated $1.25. This marks a consistent trend for Medtronic, as it has outperformed consensus EPS estimates over the past four quarters. The company's ability to exceed expectations is further highlighted by its previous quarter's earnings of $1.23 per share, which also surpassed the anticipated $1.20.

Medtronic's revenue for the quarter reached approximately $8.4 billion, exceeding the estimated $8.27 billion. This represents a 5% increase compared to the previous year, showcasing the company's steady mid-single-digit revenue growth. Medtronic has consistently surpassed consensus revenue estimates in each of the last four quarters, demonstrating strong performance and sustainability in its financial results.

Despite these positive financial metrics, Medtronic's stock price has remained stagnant. This is attributed to the unpredictable nature of its net income and only modest levels of innovation. CEO Geoff Martha emphasized the company's advancements in critical areas such as diabetes and hypertension, but did not provide specific guidance on long-term growth, resulting in cautious market sentiment.

Medtronic's financial ratios provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 25.10, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 3.26, reflecting the market's valuation of its revenue. Additionally, Medtronic's debt-to-equity ratio of approximately 0.58 shows a moderate level of debt compared to its equity, suggesting a balanced financial structure.

Medtronic (NYSE:MDT) reported first-quarter earnings on Tuesday that exceeded analyst expectations and boosted its guidance for fiscal 2025.

The medical device company posted earnings per share (EPS) of $1.23 for Q1, surpassing the consensus estimate of $1.20. Revenue for the quarter was in line with forecasts at $7.9 billion.

Medtronic's adjusted gross margin for the quarter stood at 65.9%, slightly lower than the 66.4% recorded in the same period last year but higher than the 65.5% analysts had predicted. The adjusted operating margin came in at 24.4%, matching expectations but marginally down from 24.8% in the previous year.

Looking forward, Medtronic raised its fiscal 2025 non-GAAP EPS guidance to a range of $5.42 to $5.50, slightly up from the previous projection of $5.40 to $5.50. This reflects an anticipated EPS growth of 4% to 6% for the year. Additionally, the company increased its forecast for organic revenue growth to a range of 4.5% to 5%, up from its earlier estimate of 4% to 5%.

Medtronic (NYSE:MDT), a global leader in medical technology, services, and solutions, reported its earnings for the fourth quarter of fiscal year 2024 on Thursday, May 23, before the market opened. The company's earnings per share (EPS) of $1.46 slightly surpassed the estimated EPS of $1.45, showcasing Medtronic's ability to exceed analyst expectations. Additionally, Medtronic reported revenue of approximately $8.59 billion, exceeding the estimated revenue of about $8.45 billion. This performance indicates a positive outcome for Medtronic in the recent May earnings report, reflecting the company's resilience and strategic growth initiatives in the face of industry challenges.

Despite facing a decrease of 7.5% in adjusted EPS from the same quarter in the previous year, Medtronic's financial results highlight its operational efficiency and market adaptability. The company's GAAP EPS, which includes various one-time adjustments such as restructuring and associated costs, was significantly lower at 49 cents, down 44.3% from the year-ago quarter. However, for the full fiscal year, Medtronic reported adjusted earnings of $5.53 per share, an increase of 4.5% from the previous year, beating the Zacks Consensus Estimate by 6.3%. This demonstrates Medtronic's ability to navigate through fiscal challenges while still delivering growth.

Medtronic's revenue growth was attributed to strong performance across several of its businesses, including Cranial & Spinal Technologies, Diabetes, Cardiac Pacing, and Surgical. The company's worldwide revenues for the quarter were $8.59 billion, a slight increase of 0.5% on a reported basis and 5.4% on an organic basis from the year-ago period, exceeding the Zacks Consensus Estimate by 1.8%. The total revenues for fiscal 2024 reached $32.36 billion, up 3.6% from the previous year and slightly above the Zacks Consensus Estimate by 0.5%. This revenue growth, coupled with strategic regulatory achievements such as receiving U.S. FDA approval for its Evolut™ FX+ TAVR system and Inceptiv™ closed-loop spinal cord stimulator, underscores Medtronic's broad-based, durable growth across various segments.

Furthermore, Medtronic's financial health is evident in its cash flow from operations for FY24, which was $6.8 billion, a 12% increase from the previous year. The company's free cash flow rose by 14% to $5.2 billion, demonstrating its strong cash generation capabilities. Medtronic has been proactive in returning value to its shareholders, with $5.5 billion returned in FY24, including $1.6 billion through net share repurchases in Q4 alone. The increase in its quarterly dividend to $0.70 per share, marking the 47th consecutive year of dividend increases, reflects Medtronic's commitment to shareholder value and its confidence in the company's financial stability and growth prospects.

In summary, Medtronic's latest earnings report for the fourth quarter of fiscal year 2024 highlights the company's ability to exceed expectations, navigate challenges, and continue its growth trajectory. With strategic investments in innovation, a focus on operational efficiency, and a commitment to returning value to shareholders, Medtronic is well-positioned for sustained success in the healthcare sector.

Shares of Medtronic (NYSE:MDT) climbed more than 3% pre-market today following the announcement of third-quarter results that exceeded analyst expectations, prompting the company to uplift its financial outlook for the 2024 fiscal year. Medtronic reported an adjusted earnings per share (EPS) of $1.30, which was $0.04 above the analyst consensus of $1.26. Moreover, the company's quarterly revenue reached $8.1 billion, outperforming the anticipated $7.95 billion by analysts.

Medtronic updated its forecast for organic revenue growth in fiscal 2024, increasing it from the initially projected 4.75% to a range of 4.75% to 5%. Furthermore, the adjusted EPS outlook for 2024 was adjusted upwards from the previous range of $5.13 to $5.19 to a new range of $5.19 to $5.21, attributed to the strong performance in the third quarter.

Medtronic (NYSE:MDT) reported its Q3 results, with both EPS of $1.30 and revenue of $7.7 billion coming in better than the Street estimates of $1.27 and $7.54 billion, respectively.

Better-than-expected revenue was driven by beats across all of its business segments, with headwinds abating in ventilator sales and product availability.

The company raised its 2023 guidance, now expecting FX rates to negatively impact Q4 revenue by $165-215 million and guided to 2023 EPS of $5.28-$5.30 (prior guidance of $5.25-5.30), which includes an $0.21 FX headwind as of current rates.

The company continues to expect expense reductions to help offset headwinds e.g. inflation, interest, FX, and taxes. Additionally, the company noted it expects organic growth of 4.5-5.0% in Q4.

Medtronic (NYSE:MDT) reported its Q3 results, with both EPS of $1.30 and revenue of $7.7 billion coming in better than the Street estimates of $1.27 and $7.54 billion, respectively.

Better-than-expected revenue was driven by beats across all of its business segments, with headwinds abating in ventilator sales and product availability.

The company raised its 2023 guidance, now expecting FX rates to negatively impact Q4 revenue by $165-215 million and guided to 2023 EPS of $5.28-$5.30 (prior guidance of $5.25-5.30), which includes an $0.21 FX headwind as of current rates.

The company continues to expect expense reductions to help offset headwinds e.g. inflation, interest, FX, and taxes. Additionally, the company noted it expects organic growth of 4.5-5.0% in Q4.