Medtronic (NYSE:MDT) shares jumped nearly 2% in the early session today after the medical device major delivered a robust second-quarter performance. Revenue increased by 5.4% year-over-year to $8 billion, exceeding estimates by $70 million. EPS of $1.25 also outpaced expectations by $0.07.
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The quarter was marked by strength across Medtronic’s businesses and geographies. Revenue in the Cardiovascular portfolio ticked higher by 4% thanks to strength in cardiac pacing therapies, aortic and cardiac surgery, and the Onyx Frontier drug-eluting stent. Moreover, the company bagged approvals for the Aurora EV-ICD system and Symplicity Spyral RDN system in the U.S.
In addition, revenue in the Neuroscience portfolio increased by 4.7%, while the Medical Surgical portfolio experienced a 7% increase. Revenue in the Diabetes segment surged by 9.7% due to gains from the MiniMed 780G system and Guardian 4 sensor.
Buoyed by this performance, Medtronic raised its financial outlook for Fiscal Year 2024. Revenue for the year is now expected to increase by 4.75%, compared to the earlier expectation of a 4.5% growth. In addition, EPS for the year is anticipated to land between $5.13 and $5.19, up from the previous estimated range of $5.08 to $5.16.
What is the Forecast for MDT Stock?
Overall, the Street has a Moderate Buy consensus rating on Medtronic. After a nearly 16% slide in the company’s shares over the past six months, the average MDT price target of $89.53 implies a 19.1% potential upside.
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