Medtronic (NYSE:MDT) reported strong Fiscal Q4 results with adjusted diluted earnings of $1.46 per share, a decline of 7% year-over-year. This was above analysts’ consensus estimate of $1.45 per share.
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The medical devices company posted revenues of $8.6 billion in Q4, a slight increase of 0.5% year-over-year, beating Street estimates of $8.44 billion. The company’s revenue growth was driven by broad-based growth across all its business segments including its cardiovascular, surgical, and neuroscience portfolio.
Medtronic Raises its Dividend
The company also announced that its Board of Directors had approved an increase in the cash dividend for Q1 of FY25 to $0.70 per ordinary share. On an annualized basis, the dividend would be $2.80 per ordinary share.
Medtronic has grown its dividend at a compounded annual growth rate (CAGR) of 16% over the past 47 years.
MDT’s FY25 Guidance
Looking forward, management now expects FY25 organic revenue to grow in the range of 4% to 5% and adjusted earnings per share for FY25 to be between $5.40 and $5.50, indicating an increase of 4% to 6%.
Is MDT a Good Stock to Buy Now?
Analysts remain cautiously optimistic about MDT stock, with a Moderate Buy consensus rating based on six Buys and four Holds. Year-to-date, MDT has increased by around 5%, and the average MDT price target of $97.56 implies an upside potential of 13.8% from current levels. These analyst ratings are likely to change following MDT’s Fiscal Q4 results.
