Medical device company Medtronic plc (NYSE: MDT) has reported weaker-than-expected results for the fourth quarter ended April 29, 2022.
Following its muted results, shares of the company declined 5.8% to close at $99.44 on Thursday.
Revenue & Earnings
Medtronic reported quarterly revenues of $8.09 billion, down 1.2% from the same quarter last year. Further, the figure failed to surpass the consensus estimate of $8.43 billion. The decline in revenues can be attributed to the 4.6% year-over-year fall witnessed in revenues from the Medical Surgical segment.
Earnings per share for the quarter came in at $1.52 per share, up 2% from the year-ago quarter. The consensus estimate for the same stood at $1.56 per share.
Meanwhile, Medtronic has announced a quarterly dividend of $0.68 per share, an increase of about 8% from the previous dividend of $0.63 per share.
The dividend will be paid on July 15, 2022, to shareholders of record as of June 24, 2022.
The company’s annual dividend of $2.72 per share now reflects a dividend yield of 2.6% based on Thursday’s closing price.
The CEO of Medtronic, Geoff Martha, said, “Global supply chain and COVID-19 controls in China created acute impacts to our results in the fourth quarter. We understand the root causes, we’re addressing them, and we expect them to resolve over the near-term. We remain keenly focused on delivering innovation-driven growth with a robust pipeline of technologies in fast-growing markets, and we’re committed to creating strong shareholder value through strategic capital allocation and active portfolio management.”
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on seven Buys and five Holds. MDT’s average price target of $122.09 implies that the stock has upside potential of 22.8% from current levels. Shares have declined 20.5% over the past year.
TipRanks data shows that financial bloggers are 86% Bullish on MDT, compared to the sector average of 70%.
Although Medtronic has posted muted results for the fourth quarter, the company’s move to hike its dividend is likely to increase its investment appeal.
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