Medtronic Inc. (NYSE: NYSE:MDT) has maintained its Buy rating and a $95.00 price target from TD Cowen. The firm's outlook for Medtronic remains positive following the company's first-quarter financial results, which surpassed Wall Street's expectations.
The medical device manufacturer reported non-GAAP revenue of $8.00 billion and earnings per share (EPS) of $1.23, exceeding the anticipated figures of $7.90 billion and $1.20, respectively.
Medtronic's organic sales growth reached 5.3%, outpacing the company's projected range of 4-4.5%. This growth was driven by meeting or exceeding market-specific growth (MSD) rates in three out of its four business segments.
In light of these strong results, Medtronic has updated its fiscal year 2025 organic sales growth forecast to 4.5-5% from the previous 4-5% range. Additionally, the company has refined its EPS guidance to $5.42-$5.50, slightly raising the lower end from the prior $5.40-$5.50 range.
TD Cowen anticipates that the market will react positively to Medtronic's reported earnings and the upward revision of its future guidance. The firm's assessment reflects confidence in the company's performance and its potential for continued growth.
In other recent news, Medtronic has raised its profit outlook amid robust demand for its medical devices. The company has adjusted its 2025 profit forecast, raising the lower end to $5.42 per share from the previously stated $5.40.
The positive outlook follows the company's first-quarter report, where it exceeded the consensus estimate of $1.20 per share with an adjusted profit of $1.23 per share.
On the dividend front, Medtronic announced a quarterly cash dividend of $0.70 per ordinary share for the second quarter of fiscal year 2025, maintaining its streak of increasing annual dividend payments. This is in line with its previous announcement and reflects the company's commitment to shareholders.
Medtronic has also been the subject of various analyst ratings. TD Cowen maintained its Buy rating for the company, while Stifel downgraded Medtronic from Buy to Hold citing slower-than-anticipated growth opportunities. UBS upgraded the company's stock from Sell to Neutral due to renewed confidence in the Diabetes business segment.
In product developments, Medtronic has received FDA approval for its new Simplera™ continuous glucose monitor (CGM) and announced a global partnership with Abbott to expand CGM options for individuals with diabetes. This collaboration is expected to contribute positively to the company's Diabetes revenue.
InvestingPro Insights
Medtronic Inc. (NYSE:MDT) continues to demonstrate its financial resilience and investor appeal, as shown by its recent performance. According to InvestingPro data, Medtronic boasts a solid market capitalization of $111.82 billion, underscoring its substantial presence in the healthcare equipment and supplies industry. The company's P/E ratio stands at 31.18, with an adjusted P/E for the last twelve months as of Q4 2024 at a lower 23.22, indicating a potentially more attractive valuation for investors considering long-term growth prospects.
InvestingPro Tips highlight Medtronic's commitment to returning value to shareholders, with management aggressively buying back shares and the company having raised its dividend for 10 consecutive years, maintaining payments for an impressive 48 years. These factors, combined with a 3.3% dividend yield as of the latest date in 2024, make Medtronic an intriguing option for income-focused investors. Additionally, the stock's low price volatility and its trading near its 52-week high suggest a level of stability and market confidence in the company's outlook.
For those seeking further insights, there are additional InvestingPro Tips available at InvestingPro that could provide more in-depth analysis and investment considerations for Medtronic Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.