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Valued at a market cap of $112.9 billion, Medtronic plc (MDT) develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients and currently generates revenues from four major segments, which are Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio, and Diabetes. It is expected to announce its fiscal 2025 Q3 earnings results before the market opens on Tuesday, Feb. 18.
Prior to this event, analysts expect the healthcare company to report a profit of $1.36 per share, up 4.6% from $1.30 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's earnings estimates in the last four quarters. In Q2, MDT’s EPS of $1.26 outpaced the forecasted figure by 1.6%.
For fiscal 2025, analysts expect MDT to report an EPS of $5.45, up 4.8% from a profit of $5.20 in fiscal 2024.
Shares of MDT have gained 2.4% over the past 52 weeks, significantly lagging behind the S&P 500 Index's ($SPX) 26.5% return but outpacing the Health Care Select Sector SPDR Fund’s (XLV) marginal rise over the same time frame.
On Nov. 19, shares of MDT plunged 3% despite delivering better-than-expected Q2 adjusted earnings of $1.26 per share, which improved by nearly 1% from the year-ago quarter and revenues of $8.4 billion that grew 5.3% annually. However, due to a supplier issue, the company’s cardiac ablation unit had flat sales. This might have disappointed the investors and led to the stock's downward price movement. In addition to narrowing its full-year 2025 EPS projection to $5.44 to $5.50, the business also narrowed its revenue growth guidance to the range of 4.75% to 5%.
Wall Street analysts are moderately optimistic about Medtronic’s stock, with a "Moderate Buy" rating overall. Among 28 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a “Moderate Buy,” 15 recommend “Hold,” and two indicate “Strong Sell.” The mean price target for MDT is $93.83, which indicates a 6.5% potential upside from the current levels.
