Health and Healthcare

What to Expect From Medtronic Earnings

Thinkstock

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.

ALSO READ: 5 Top Dividend Hikes Expected Before the End of 2015

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

  1. Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
  2. Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
  3. Choose Your  Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.