Cigna earnings beat by $0.04, revenue topped estimates
On Wednesday, Stifel analysts maintained a Hold rating on Medtronic , Inc. (NYSE:MDT), a $110 billion healthcare equipment giant, with a steady price target of $87.00. The decision comes after Medtronic reported third-quarter fiscal year 2025 revenues of $8.292 billion. According to InvestingPro data, the company maintains a solid dividend yield of 3.25% and has consistently paid dividends for 48 consecutive years. This figure slightly missed Stifel and consensus estimates, which were $8.313 billion and $8.331 billion, respectively. Additionally, the company’s organic revenue growth of 4.1% also fell below the approximately 4.8% projected by Stifel and consensus. InvestingPro analysis reveals that 10 analysts have revised their earnings downwards for the upcoming period, though the company’s overall financial health score remains GOOD.
A significant factor in the company’s performance was attributed to the Surgical Innovations division, which accounts for about 25% of sales. This segment experienced a year-over-year decline of 0.4%. Stifel analysts pointed out that distributor de-stocking within this division was a primary reason for the underperformance.
Despite the shortfall, Medtronic remains optimistic. The company has indicated that it perceives the distributor de-stocking as a one-time event and does not view it as indicative of a decrease in the underlying demand for physician laparoscopic services.
Medtronic’s management has expressed confidence in the strength of its core businesses and believes that the fundamentals remain solid. They anticipate that the effects of the de-stocking will not have a lasting impact on the company’s overall growth trajectory.
The Stifel analysts’ reiteration of their Hold rating and price target reflects a cautious stance on Medtronic stock, taking into account the recent quarter’s performance and the company’s outlook. Trading at a P/E ratio of 26.3, InvestingPro analysis suggests the stock is slightly undervalued based on its Fair Value model. Medtronic’s shares continue to be monitored by investors as the company navigates market challenges and works to meet its financial targets. InvestingPro subscribers have access to 8 additional key insights about Medtronic, including detailed analysis of its financial health metrics and growth prospects.
In other recent news, Medtronic PLC (BVMF:MDTC34) reported its third-quarter earnings for fiscal year 2025. The company posted an adjusted earnings per share (EPS) of $1.39, exceeding analyst expectations of $1.36. However, revenue fell slightly short of forecasts, registering $8.29 billion against the anticipated $8.33 billion. Despite the EPS beat, the revenue miss has raised some concerns among investors. Medtronic’s organic revenue growth was 4.1% year-over-year, with notable contributions from international markets like Japan and emerging markets. The company has also made significant strides in product innovation, particularly in the Cardiac Ablation and Diabetes segments. Analyst firms have not issued any recent upgrades or downgrades for Medtronic, but the company remains focused on its strategic growth drivers. Medtronic anticipates further acceleration in revenue and EPS growth in the fourth quarter, driven by innovations such as the HUGO Robotic Platform and Renal Denervation.
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