Medtronic (MDT) Q2 Earnings Preview: What Wall Street Expects
Medtronic PLC (MDT) is set to release its Q2 earnings report on Tuesday, November 19. As the market anticipates this significant financial update, analysts on Wall Street have projected earnings of $1.24 per share, a slight year-over-year decline of 0.8%.
However, revenues are expected to reach $8.26 billion, representing a 3.5% increase compared to the same quarter last year. The company’s upcoming financial results have garnered attention for their implications on the medical device sector and broader investment trends.
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Expected Q2 Earning Report of Medtronic PLC:
The consensus estimate for Medtronic’s Q2 earnings has remained unchanged over the past 30 days, indicating stable analyst expectations. Beyond the top-line revenue and EPS projections, analysts have delved into key business segments. For example, the Neuroscience segment’s “Cranial & Spinal Technologies” revenue is expected to reach $1.21 billion, a 4.5% increase from the previous year. Meanwhile, the U.S. revenue in Medical Surgical is projected at $939.52 million, reflecting a 2.4% decline year over year.
Medtronic’s Neuroscience and Cardiovascular divisions are predicted to show strong performance, with growth rates of 4% and above in several sub-segments. However, the Medical Surgical portfolio’s projected contraction raises concerns about challenges in specific areas of the company’s operations.
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Stock Target Advisor’s Analysis on Medtronic PLC:
According to Stock Target Advisor, Medtronic PLC holds a “Slightly Bullish” rating. This rating is backed by eight positive signals and countered by five negative signals. Notable strengths include high market capitalization, low volatility, superior total returns, and consistent dividend growth. Medtronic has delivered a 17.08% capital gain over the past year and boasts top-quartile performance in several profitability ratios, such as return on equity (7.95%) and return on invested capital (6.09%).
On the downside, the stock is considered overpriced on cash flow and free cash flow bases compared to its peers, and its revenue growth over the last five years has been below the sector median. Despite these challenges, the average 12-month price target of $93.62 suggests a 6.77% upside from the last closing price of $87.53.
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Conclusion:
As Medtronic approaches its Q2 earnings report, investors will closely monitor the company’s ability to meet or exceed expectations. With stable consensus estimates and robust performance in critical segments like Neuroscience and Cardiovascular, the report could reinforce confidence in Medtronic’s strategic growth areas.
