Health and Healthcare

What to Expect From Medtronic Earnings

Chris Lange

Published: December 2, 2015 1:40 pm

Last Updated: March 13, 2020 10:08 pm

Medtronic PLC (NYSE: MDT) is scheduled to report its fiscal second-quarter financial results after the markets close on Thursday. Thomson Reuters consensus estimates call for $1.00 in earnings per share (EPS) on $7.06 billion in revenue. The same period from the previous year had $1.11 in EPS on $4.37 billion in revenue.

This company is now based in Ireland after the gigantic combination with Covidien. Many on Wall Street see this historical merger, probably one of the largest in the industry, as a momentous event, leading to the creation of a unique company that combines the extensive and innovative abilities of both Medtronic and Covidien. The combined company, with officially joint forces of over 85,000 employees present in more than 160 countries and annual revenues of $27.4 billion in 2014, will now expedite Medtronic’s three fundamental strategies of therapy innovation, globalization and economic value.

Analysts have pointed out that the stock was recently under pressure, first due to emerging markets concerns, then after its fiscal first-quarter earnings, which the company believes markets misunderstood. The analysts note Medtronic had a strong quarter of top line growth driven by the pipeline that they believe can continue, maybe not at the same level every quarter going forward, but in a solid mid-single-digit range.

A few analysts weigh in on Medtronic ahead of the earnings report:

• Credit Suisse reiterated an Outperform rating with an $85 price target.
• JPMorgan has an Overweight rating and raised its price target to $88 from $82.
• Goldman Sachs has a Buy rating and a $90 price target.
• BTIG Research reiterated a Buy rating with an $84 price target.

So far in 2015, Medtronic has outperformed the market, with shares up 7.5% year to date. Over the past 52 weeks, the stock is up only 5.5%.

Shares of Medtronic were trading at $76.11 on Wednesday, with a consensus analyst price target of $86.58 and a 52-week trading range of $55.54 to $79.50.

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