Medtronic Stock Flirts With Buy Zone On Earnings Beat, Though Guidance So-So

Medtronic stock flirted with a buy zone Thursday after the medical technology giant beat Wall Street’s fiscal fourth-quarter forecasts.


At the height of the pandemic, many patients delayed elective procedures. Now, that trend is starting to ease, Edward Jones analyst Ashtyn Evans said in a report to clients.

“This was a strong quarter for Medtronic (MDT),” she said. “We are pleased to see procedure volumes recover from the impact of the pandemic, in addition to gains in market share.”

On the stock market today, Medtronic stock dipped 0.9% to 125.15.

Medtronic Stock Flirts With Buy Zone

During the fiscal quarter ended April 30, adjusted Medtronic earnings surged 159% to $1.50 per share. Sales increased 37% on a strict as-reported basis to $8.19 billion. Organically, sales grew 32%, Medtronic said in a news release.

Both measures easily topped the projection of Medtronic stock analysts polled by FactSet. Analysts predicted adjusted profit of $1.42 a share on $7.86 billion in sales.

Revenue from Medtronic’s cardiovascular and medical-surgical businesses were in line with forecasts at, respectively, $2.91 billion and $2.34 billion. On an as-reported basis, sales from the cardiovascular unit grew 45% and medical-surgical sales rose 21%.

Neurosciences sales came in at close to $2.3 billion, soaring 54% to beat expectations. But the diabetes devices business generated $647 million, below forecasts. Sales popped 14%.

Guidance Short At Midpoint

For the year, Medtronic guided to adjusted profit of $5.60-$5.75 a share. The high end of the guidance touched Medtronic stock analysts’ forecast for $5.75. But the midpoint was short. Medtronic also called for 9% organic sales growth.

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Medtronic also said it sees a 10% increase in research and development investments over the year.  Chief Financial Officer Karen Parkhill said in a written statement that the investments were “the largest increase in R&D spend in our company’s history, as we accelerate long-term growth and capitalize on a long list of opportunities.”

In early action, Medtronic stock was flirting with the high of a chase zone above a buy point at 120.63. Shares broke out of a flat base in early April. The buy zone runs roughly from 120.63-126.66, according to

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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