Third-quarter revenue is forecast to rise by 3.0% sequentially to $1.02 billion and fall 13.6% year over year. The company is expected to post EPS of $0.04, up by three cents sequentially and better than a loss of $0.34 per share in the year-ago quarter. For the full fiscal year, analysts expect EPS of $0.11, up from a loss of $1.22 per share last year, on revenue of $4.03 billion, down 16.1%.
The stock trades at 22.9 times expected 2022 EPS, 12.9 times estimated 2023 earnings of $0.22 and 8.7 times estimated 2024 earnings of $0.32 per share. The stock’s 52-week range is $1.65 to $7.22. The company does not pay a dividend, and the total shareholder return for the past year was negative 60.5%.
Medical device maker Medtronic PLC (NYSE: MDT) has posted a share price decline of nearly 32% over the past 12 months. Shares have traded below their 52-week high for a week short of 12 months.
More than 80% of Medtronic’s are held by institutional investors who could make life at least uncomfortable for management unless the company has something to offer besides a decent dividend. The company announced a spin-off of its patient monitoring and respiratory intervention businesses into a separate company in an effort to gin up shareholder value.
Analysts remain upbeat, if not exactly bullish, with 13 of 28 brokerages having a Buy or Strong Buy rating and another 13 rating the shares at Hold. At a price of around $80.40 a share, the upside potential based on a median price target of $102.50 is 27.5%. At the high price target of $127.00, the upside potential is 58%.
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Analysts expect the company to report 2023 second-quarter revenue of $7.7 billion, up 4.5% sequentially but down 1.9% year over year. Adjusted EPS are forecast at $1.28, up 13.1% sequentially and by 2.2% year over year. Current estimates for the 2023 fiscal year ending next April call for EPS of $5.53, down about 0.4%, on sales of $31.61 billion, down 0.2%.
Medtronic’s stock trades at 14.6 times expected 2023 EPS, 13.7 times estimated 2024 earnings of $5.87 and 12.8 times estimated 2025 earnings of $6.28 per share. The stock’s 52-week range is $79.19 to $118.80. The company pays an annual dividend of $2.72 (yield of 3.33%). Total shareholder return for the past year was negative 29.7%.
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