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On Monday, Needham analysts maintained a Hold rating on shares of Medtronic , Inc. (NYSE:MDT), a global leader in medical technology services with a market capitalization of $110.86 billion and annual revenue of $33.2 billion. The firm anticipates that Medtronic will report its fourth-quarter fiscal year 2025 (F4Q25) earnings before the market opens on May 21, 2025, followed by an earnings webcast at 8:00 am ET.
The analysts project that Medtronic will slightly surpass Wall Street’s consensus estimates for both revenue and earnings per share (EPS) in F4Q25. This expectation is based on the company’s recent product launches, overall healthy market growth, and what is perceived as conservative guidance from the management. According to InvestingPro data, the company maintains a GOOD financial health score and has consistently paid dividends for 49 consecutive years, currently offering a 3.24% yield.
Medtronic’s earnings call, which is scheduled for the same day, is expected to cover the company’s performance in detail, including the provision of revenue and EPS guidance for fiscal year 2026 (FY26). Needham analysts believe that the guidance provided will likely be in line with the current consensus.
Although the analysts recognize Medtronic’s potential, highlighted by a strong product cycle with innovations like the Affera PFA system, Symplicity RDN system, Simplera Sync CGM, and Hugo robot, they are awaiting signs of a meaningful and sustainable acceleration in the company’s organic growth before changing their rating. InvestingPro analysis indicates the stock is trading near its Fair Value, with 8 additional exclusive insights available to subscribers.
The Hold rating reflects a cautious optimism, acknowledging Medtronic’s current position and future prospects while also considering the need for evidence of consistent growth. With a P/E ratio of 26.18 and an analyst consensus rating of 2.19, investors will be looking to the upcoming earnings report and guidance as indicators of the company’s trajectory in the coming fiscal year.
In other recent news, Medtronic has been active with several developments that investors might find noteworthy. The company is preparing to release its fourth-quarter fiscal year 2025 earnings report, with expectations of conservative revenue guidance projected around 4.5-5.5% organic growth. Barclays (LON:BARC) reaffirmed its Overweight rating on Medtronic, setting a price target of $109, influenced by the positive results from the EXPAND URO trial and the submission of the Hugo robotic-assisted surgery system for FDA approval. Meanwhile, Piper Sandler maintained a Neutral rating with a $90 price target, citing mixed opinions from a key opinion leader on Medtronic’s renal denervation technology. Additionally, Medtronic has submitted applications to the FDA for a new interoperable insulin pump, aiming to integrate it with Abbott’s continuous glucose monitoring sensor. In collaboration with Orchestra BioMed, Medtronic announced that the FDA granted Breakthrough Device Designation for the AVIM therapy, which could expedite its development and review process. These recent activities reflect Medtronic’s ongoing focus on innovation and regulatory progress, as the company seeks to enhance its product offerings and market reach.
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