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What's in the Cards for Medtronic (MDT) in Q2 Earnings?
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Medtronic plc (MDT - Free Report) is scheduled to report second-quarter fiscal 2023 results on Nov 21, before the opening bell.
In the last reported quarter, the company’s earnings exceeded the Zacks Consensus Estimate by 8.1%. Medtronic surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 3.37%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Similar to the last few quarters, Medtronic's business is expected to have registered growth. The upside is likely to have been fueled by procedure volume recovery, supply improvements and innovative product introductions.
In cardiac rhythm management within the broader Cardiovascular, the company continues to outperform the market, banking on strong global growth of its Micra leadless pacemaker family as it enters new geographies and expands penetration in existing markets. In May 2023, Medtronic received FDA approval for Micra AV2 and VR2, which extend the battery life by 40% to a projected 16-17 years, respectively. The ICDs (Implantable cardioverter-defibrillator) within cardiac rhythm management are gaining in terms of market share following the latest CE Mark for the Aurora Extravascular ICD. We believe these developments to have boosted the company’s second-quarter revenues.
Per our model, we project the Medtronic Cardiovascular segment to register growth of 3.9% in the fiscal second quarter.
Within Medtronic’s Neuroscience portfolio, the Cranial Spinal technologies business registered robust growth in recent quarters. In the fiscal first quarter, this segment benefitted from increased sales of Spine & Biologics products in the United States based on the continued adoption of the Aible spinal ecosystem. The company's ENT business within the Specialty Therapies division in the Neuroscience portfolio continues to contribute positively. The Specialty Therapies business is gaining from the strong performances of the company’s hemorrhagic stroke flow diversion products. We expect these trends to have continued through the fiscal second quarter, thus adding to the top line.
Per our model, we project Medtronic’s Neuroscience segment to register growth of 2% in the fiscal second quarter.
Within Medtronic’s MedSurg portfolios, the rollout of differentiated Hugo robotic systems in many international markets and the United States will likely drive revenues in the to-be-reported quarter. Medtronic is likely to have registered strong performance within Advanced Energy and Barrx, primarily driven by improved supply and continued growth in GI Genius and PillCam in the second quarter of fiscal 2024.
We project Medtronic’s MedSurg segment to register an increase of 8.9% in the fiscal second quarter.
In Diabetes, Medtronic continues to see significant growth in markets outside the United States, led by the increasing user base of the MiniMed 780G insulin pump combined with the Guardian 4 sensor. During the fiscal first quarter, the company launched 780G and Guardian 4 sensors. We believe these launches will contribute to the company’s fiscal second-quarter performance owing to strong customer adoption.
In September 2023, Medtronic received CE Mark approval for its new all-in-one, disposable Simplera continuous glucose monitor (CGM) featuring a simple, two-step insertion process. We believe this development will contribute to the company’s top line in the quarter to be reported.
According to our model, Medtronic’s overall Diabetes is expected to rise 0.7% in the fiscal second quarter.
Q2 Estimates
The Zacks Consensus Estimate for Medtronic’s fiscal second-quarter total revenues of $7.92 billion suggests a 4.4% rise from the prior-year reported number. The consensus mark for earnings is pegged at $1.18 per share, suggesting a 9.2% decline from the year-ago reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Medtronic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Medtronic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Medtronic currently carries a Zacks Rank #3 (Hold).
Stocks Worth a Look
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , DexCom, Inc. (DXCM - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Abbott, carrying a Zacks Rank of 2, reported adjusted earnings per share (EPS) of $1.14 in third-quarter 2023, beating the Zacks Consensus Estimate by 3.6%. Revenues of $10.14 billion outpaced the consensus mark by 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.8%.
DexCom reported adjusted EPS of 50 cents in third-quarter 2023, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported adjusted EPS of $1.27 in third-quarter 2023, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
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What's in the Cards for Medtronic (MDT) in Q2 Earnings?
Medtronic plc (MDT - Free Report) is scheduled to report second-quarter fiscal 2023 results on Nov 21, before the opening bell.
In the last reported quarter, the company’s earnings exceeded the Zacks Consensus Estimate by 8.1%. Medtronic surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 3.37%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Similar to the last few quarters, Medtronic's business is expected to have registered growth. The upside is likely to have been fueled by procedure volume recovery, supply improvements and innovative product introductions.
In cardiac rhythm management within the broader Cardiovascular, the company continues to outperform the market, banking on strong global growth of its Micra leadless pacemaker family as it enters new geographies and expands penetration in existing markets. In May 2023, Medtronic received FDA approval for Micra AV2 and VR2, which extend the battery life by 40% to a projected 16-17 years, respectively. The ICDs (Implantable cardioverter-defibrillator) within cardiac rhythm management are gaining in terms of market share following the latest CE Mark for the Aurora Extravascular ICD. We believe these developments to have boosted the company’s second-quarter revenues.
Per our model, we project the Medtronic Cardiovascular segment to register growth of 3.9% in the fiscal second quarter.
Within Medtronic’s Neuroscience portfolio, the Cranial Spinal technologies business registered robust growth in recent quarters. In the fiscal first quarter, this segment benefitted from increased sales of Spine & Biologics products in the United States based on the continued adoption of the Aible spinal ecosystem. The company's ENT business within the Specialty Therapies division in the Neuroscience portfolio continues to contribute positively. The Specialty Therapies business is gaining from the strong performances of the company’s hemorrhagic stroke flow diversion products. We expect these trends to have continued through the fiscal second quarter, thus adding to the top line.
Per our model, we project Medtronic’s Neuroscience segment to register growth of 2% in the fiscal second quarter.
Medtronic PLC Price and EPS Surprise
Medtronic PLC price-eps-surprise | Medtronic PLC Quote
Within Medtronic’s MedSurg portfolios, the rollout of differentiated Hugo robotic systems in many international markets and the United States will likely drive revenues in the to-be-reported quarter. Medtronic is likely to have registered strong performance within Advanced Energy and Barrx, primarily driven by improved supply and continued growth in GI Genius and PillCam in the second quarter of fiscal 2024.
We project Medtronic’s MedSurg segment to register an increase of 8.9% in the fiscal second quarter.
In Diabetes, Medtronic continues to see significant growth in markets outside the United States, led by the increasing user base of the MiniMed 780G insulin pump combined with the Guardian 4 sensor. During the fiscal first quarter, the company launched 780G and Guardian 4 sensors. We believe these launches will contribute to the company’s fiscal second-quarter performance owing to strong customer adoption.
In September 2023, Medtronic received CE Mark approval for its new all-in-one, disposable Simplera continuous glucose monitor (CGM) featuring a simple, two-step insertion process. We believe this development will contribute to the company’s top line in the quarter to be reported.
According to our model, Medtronic’s overall Diabetes is expected to rise 0.7% in the fiscal second quarter.
Q2 Estimates
The Zacks Consensus Estimate for Medtronic’s fiscal second-quarter total revenues of $7.92 billion suggests a 4.4% rise from the prior-year reported number. The consensus mark for earnings is pegged at $1.18 per share, suggesting a 9.2% decline from the year-ago reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Medtronic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Medtronic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Medtronic currently carries a Zacks Rank #3 (Hold).
Stocks Worth a Look
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , DexCom, Inc. (DXCM - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Abbott, carrying a Zacks Rank of 2, reported adjusted earnings per share (EPS) of $1.14 in third-quarter 2023, beating the Zacks Consensus Estimate by 3.6%. Revenues of $10.14 billion outpaced the consensus mark by 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.8%.
DexCom reported adjusted EPS of 50 cents in third-quarter 2023, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported adjusted EPS of $1.27 in third-quarter 2023, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.