Earnings and Growth Analysis : Medtronic (NYSE:MDT)


Earnings results for Medtronic (NYSE:MDT)

Medtronic plc is estimated to report earnings on 02/16/2021. The upcoming earnings date is derived from an algorithm based on a company’s historical reporting dates. Our vendor, Zacks Investment Research, might revise this date in the future, once the company announces the actual earnings date. According to Zacks Investment Research, based on 13 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.15. The reported EPS for the same quarter last year was $1.44.

Medtronic last released its quarterly earnings data on November 23rd, 2020. The medical technology company reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.22. The company earned $7.65 billion during the quarter, compared to the consensus estimate of $7.05 billion. Medtronic has generated $4.59 earnings per share over the last year and currently has a price-to-earnings ratio of 45.7. Medtronic has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Tuesday, February 16th, 2021 based off prior year’s report dates.

Analyst Opinion on Medtronic (NYSE:MDT)

24 Wall Street analysts have issued ratings and price targets for Medtronic in the last 12 months. Their average twelve-month price target is $122.30, predicting that the stock has a possible upside of 2.13%. The high price target for MDT is $140.00 and the low price target for MDT is $92.00. There are currently 3 hold ratings, 20 buy ratings and 1 strong buy rating for the stock, resulting in a consensus rating of “Buy.”

Medtronic has received a consensus rating of Buy. The company’s average rating score is 2.92, and is based on 20 buy ratings, 3 hold ratings, and no sell ratings. According to analysts’ consensus price target of $122.30, Medtronic has a forecasted upside of 2.1% from its current price of $119.74. Medtronic has been the subject of 12 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Medtronic (NYSE:MDT)

Medtronic pays a meaningful dividend of 1.95%, higher than the bottom 25% of all stocks that pay dividends. Medtronic has been increasing its dividend for 44 years. The dividend payout ratio of Medtronic is 50.54%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Medtronic will have a dividend payout ratio of 39.86% next year. This indicates that Medtronic will be able to sustain or increase its dividend.

Insiders buying/selling: Medtronic (NYSE:MDT)

In the past three months, Medtronic insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,985,478.00 in company stock. Only 0.52% of the stock of Medtronic is held by insiders. 79.17% of the stock of Medtronic is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Medtronic (NYSE:MDT

Earnings for Medtronic are expected to grow by 38.24% in the coming year, from $4.21 to $5.82 per share. The P/E ratio of Medtronic is 45.70, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 24.35. The P/E ratio of Medtronic is 45.70, which means that it is trading at a more expensive P/E ratio than the Medical sector average P/E ratio of about 38.19. Medtronic has a PEG Ratio of 3.65. PEG Ratios above 1 indicate that a company could be overvalued. Medtronic has a P/B Ratio of 3.15. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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