Medtronic PLC (NYSE: MDT) is scheduled to report its fiscal third-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters that call for $1.06 in earnings per share (EPS) on $6.99 billion in revenue. In the same period of the previous year, it reported EPS of $1.13 and $4.32 billion in revenue.
This company is now based in Ireland after the gigantic combination with Covidien. Medtronic is a medical devices giant, and many on Wall Street saw this historical merger, probably one of the largest in the medtech 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.
The stock was under pressure last summer, first due to emerging markets concerns and then after earnings, which analysts believe the market misunderstood.
The company is also pursuing a huge new restructuring move that is expected to free up $9.3 billion in cash, which can help pay down debt or buy back shares, or maybe even help with a selective acquisition.
A few analysts weighed in on Medtronic ahead of the earnings report:
- Needham reiterated a Buy rating with a $91 price target.
- Leerink has a Market Perform rating with an $84 price target.
- Jefferies has a Buy rating with an $88 price target.
So far in 2016, Medtronic has remained relatively flat, with the stock up only 0.5% year to date. However, over the past 52 weeks the stock is down 0.5%.
Shares of Medtronic were trading up nearly 1.1% at $78.18 on Monday, with a consensus analyst price target of $87.25 and a 52-week trading range of $55.54 to $79.50.
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