Medtronic (NYSE:MDT) is gearing up to announce its quarterly earnings on Tuesday, 2024-11-19. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Medtronic will report an earnings per share (EPS) of $1.25.
Investors in Medtronic are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings History Snapshot
Last quarter the company beat EPS by $0.03, which was followed by a 2.53% increase in the share price the next day.
Here's a look at Medtronic's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.20 | 1.45 | 1.26 | 1.18 |
| EPS Actual | 1.23 | 1.46 | 1.30 | 1.25 |
| Price Change % | 3.0% | 1.0% | 0.0% | -0.0% |
Stock Performance
Shares of Medtronic were trading at $87.53 as of November 15. Over the last 52-week period, shares are up 12.07%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Medtronic
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Medtronic.
A total of 13 analyst ratings have been received for Medtronic, with the consensus rating being Neutral. The average one-year price target stands at $95.85, suggesting a potential 9.51% upside.
Analyzing Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Boston Scientific, Stryker and Becton Dickinson, three prominent industry players, providing insights into their relative performance expectations and market positioning.
As per analysts' assessments, Boston Scientific is favoring an Buy trajectory, with an average 1-year price target of $96.63, suggesting a potential 10.4% upside. Stryker received a Outperform consensus from analysts, with an average 1-year price target of $395.16, implying a potential 351.46% upside. As per analysts' assessments, Becton Dickinson is favoring an Buy trajectory, with an average 1-year price target of $282.5, suggesting a potential 222.75% upside. Peers Comparative Analysis Summary
The peer analysis summary provides a snapshot of key metrics for Boston Scientific, Stryker and Becton Dickinson, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Medtronic | Neutral | 2.77% | $5.15B | 2.12% |
| Boston Scientific | Buy | 19.34% | $2.90B | 2.28% |
| Stryker | Outperform | 11.92% | $3.52B | 4.18% |
| Becton Dickinson | Buy | 8.96% | $2.31B | 1.63% |
Key Takeaway:
Medtronic ranks in the middle among its peers for revenue growth. It is at the bottom for gross profit and return on equity.
Delving into Medtronic's Background
One of the largest medical-device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for roughly 50% of the company's total sales.
Financial Milestones: Medtronic's Journey
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Medtronic displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 2.77%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: Medtronic's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 13.16%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Medtronic's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.12%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Medtronic's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.16%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Medtronic's debt-to-equity ratio is below the industry average. With a ratio of 0.58, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Medtronic visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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