Medtronic Q1 Earnings to More Than Double; Stocks Could Hit New Highs

Medtronic, an American-Irish medical device company, is expected to report its fiscal first-quarter earnings of $1.32 per share, which represents year-over-year growth of over 112% from $0.62 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 45%. The Fridley, Minnesota-based medical company would post year-over-year revenue growth of over 20% to $7.8 billion.

Medtronic shares have gained over 10% so far this year. The stocks ended 0.30% lower at $128.93 on Thursday. Tuesday’s better-than-expected results could help the stock hit new all-time highs.

Analyst Comments

“Medtronic is well aligned with our 2021 pro-recovery thesis, and we see sustainable 5%+ organic growth driven by the company’s ~5% WAMGR and supported by pipeline product launches & tuck-in M&A contributions (Micra AV, EV-ICD, EPIX, RDN, Zeus/Synergy, 780G, InPen, DTM, Interstim Micro, and the soft tisssue robot),” noted Cecilia Furlong, equity analyst at Morgan Stanley.

“CEO Geoff Martha has committed to initiatives to smooth bulk purchasing and deliver more consistent results and redeploy $450mn annual OpEx savings toward innovation & product reinvestment.”

Medtronic Stock Price Forecast

Seventeen analysts who offered stock ratings for Medtronic in the last three months forecast the average price in 12 months of $142.56 with a high forecast of $150.00 and a low forecast of $135.00.

The average price target represents a 10.57% change from the last price of $128.93. From those 17 analysts, 15 rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $140 with a high of $158 under a bull scenario and $104 under the worst-case scenario. The firm gave an “Overweight” rating on the medical device company’s stock.

Several other analysts have also updated their stock outlook. BTIG raised the target price to $137 from $135. Guggenheim lifted the price target to $145 from $135. Oppenheimer upped the price target to $147 from $134.

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