DUBLIN - Medtronic plc (NYSE:MDT), a prominent healthcare technology company, today announced the upcoming departure of Karen Parkhill, its Executive Vice President and Chief Financial Officer, who will be taking on the role of Chief Financial Officer at HP Inc (NYSE:HPQ). Parkhill's resignation will be effective August 2, after which Gary Corona, Senior Vice President of Global Financial Planning and Analysis, will assume the position of interim CFO.
During her tenure of eight years at Medtronic, Parkhill played a pivotal role in steering the company through significant events, including a leadership transition and the global pandemic. Geoff Martha, Medtronic's Chairman and CEO, expressed gratitude for Parkhill's contributions and support, particularly in implementing a new operating model for the company.
Parkhill reflected positively on her time at Medtronic, expressing pride in leading the finance team and confidence in their ongoing commitment to the company's objectives. She also conveyed enthusiasm for Medtronic's future plans and the potential impact of its technologies on patient lives worldwide.
Medtronic is actively reviewing both internal and external candidates to fill the CFO position permanently. In the meantime, the company has reaffirmed its financial guidance for the first quarter and the full fiscal year of 2025, as previously outlined in its May 23, 2024, earnings press release.
In other recent news, Medtronic PLC, a key player in the medical technology industry, has made several noteworthy developments. The company recently priced a multi-tranche offering of senior notes totaling €3 billion, which will be used for general corporate purposes, including the repayment of existing debts. This move follows a recent downgrade from Goldman Sachs, which initiated coverage on the company with a Sell rating and a price target of $83.00, due to concerns about increased investment needs to sustain growth.
Despite this, other analysts maintain a more optimistic outlook. TD Cowen reiterated a Buy rating on Medtronic, with a price target of $95.00, following the company's reported fourth-quarter revenue and earnings per share (EPS) that surpassed expectations. Meanwhile, Baird maintained a Neutral stance on the stock, reducing the price target to $87 from $88, expressing concerns about foreign exchange and macroeconomic margin pressures.
Medtronic's forecast predicts year-over-year organic sales growth of 4.5-5.0% and an EPS increase of 9.0-11.0%, excluding foreign exchange impacts. These figures align with consensus estimates, indicating a realistic outlook for the company's fiscal year 2025. The company's performance and future prospects are closely watched by investors as it continues to navigate the competitive landscape of the medical technology industry.
InvestingPro Insights
As Medtronic plc (NYSE:MDT) navigates the transition period following the departure of CFO Karen Parkhill, the company's financial stability and market performance remain a focal point for investors. With an adjusted market capitalization of $103.11 billion and a robust history of dividend reliability, Medtronic is positioned as a key player in the healthcare equipment and supplies industry.
InvestingPro Tips suggest that Medtronic's management has been actively engaging in share buybacks, a move that often signals confidence in the company's valuation and future prospects. Additionally, the company has demonstrated a commitment to its shareholders by raising its dividend for 10 consecutive years and maintaining dividend payments for an impressive 48 consecutive years. For investors looking for a steady income stream, these details underscore Medtronic's dedication to returning value.
From a valuation standpoint, Medtronic's price-to-earnings (P/E) ratio stands at 29.13, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 23.07. This could indicate that the company is reasonably valued compared to its earnings. Moreover, the gross profit margin for the same period is a strong 65.73%, suggesting efficient operations and a solid competitive edge in its sector.
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