Analysts at William Blair have raised their earnings per share (EPS) estimates for Medtronic PLC, reflecting positive projections for the medical technology company. In a research report issued on November 19, 2023, analyst B. Vazquez increased the FY2026 EPS forecast to $5.68, up from a previous estimate of $5.63. This adjustment surpasses the consensus estimate of $5.46 for the current full-year earnings.
In addition to the FY2026 forecast, William Blair also provided estimates for Medtronic’s upcoming quarters. The firm anticipates an EPS of $1.39 for Q1 2027, $1.46 for Q2 2027, and $1.83 for Q4 2027, with a total FY2027 EPS estimate of $6.16.
Recent Earnings Performance
Medtronic recently reported its earnings results for the last quarter on November 18, 2023. The company achieved an EPS of $1.36, exceeding analysts’ expectations of $1.31 by $0.05. The revenue for the quarter totaled $8.96 billion, surpassing the anticipated $8.86 billion. Compared to the same period last year, Medtronic’s revenue increased by 6.6%, up from an EPS of $1.26 in the prior year.
Medtronic has set its FY2026 guidance between $5.620 and $5.660 EPS, indicating a stable outlook as the company navigates market dynamics.
Market Reaction and Stock Performance
Following the earnings announcement, shares of Medtronic traded down by 0.3% on the following Thursday, reaching $100.05. The trading volume was 913,895 shares, compared to the average volume of 7,499,413. Medtronic’s market capitalization stands at $128.33 billion, with a P/E ratio of 27.58 and a beta of 0.77. Over the past year, the stock has fluctuated between a low of $79.29 and a high of $102.59.
Institutional investors have been adjusting their positions in Medtronic. For instance, Caerus Investment Advisors LLC acquired a new stake valued at $636,000 in the third quarter. Additionally, Faithward Advisors LLC increased its holdings by 7.5% and now owns 5,405 shares worth $515,000 after buying an extra 379 shares.
Other notable changes include Sunbelt Securities Inc., which raised its stake by 14.8%, and Captrust Financial Advisors, which lifted its position by 4.3%. Currently, approximately 82.06% of Medtronic’s stock is held by institutional investors.
Insider Activity
In recent insider activity, EVP Harry Skip Kiil sold 8,605 shares of Medtronic on September 3, 2023. The shares were sold at an average price of $91.58, totaling $788,045.90. After the transaction, Kiil retained 35,615 shares, representing a 19.46% decrease in ownership.
Conversely, Director William R. Jellison purchased 2,500 shares on August 25, 2023, at an average cost of $92.37 per share, amounting to $230,925.00. Following this acquisition, Jellison’s total shares increased to 5,000, reflecting a full 100% increase in his position.
About Medtronic
Medtronic PLC specializes in developing, manufacturing, and selling device-based medical therapies. Its products cater to healthcare systems, physicians, and patients globally. The company’s Cardiovascular Portfolio includes implantable cardiac pacemakers, defibrillators, and remote monitoring software, among other advanced medical technologies.
In conclusion, the upward revision of EPS estimates by analysts at William Blair and Medtronic’s recent financial performance highlight the company’s ongoing strength in the medical technology sector. As institutional interest remains robust, Medtronic is poised to navigate future market challenges effectively.
