Shares of medical device maker Medtronic (NYSE:MDT) are ticking nearly 6% higher today after the company delivered a better-than-expected set of numbers for the third quarter. With a year-over-year increase of 4.7%, revenue of $8.09 billion exceeded estimates by $139 million. Further, EPS of $1.30 came in ahead of expectations by $0.04.
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Medtronic is witnessing robust momentum across Diabetes, Core Spine, Cardiac Surgery, Structural Heart, and Cardiac Pacing. Revenue in the Cardiovascular portfolio increased by 6.1% to $2.93 billion. Further, revenue in the Neuroscience portfolio ticked up by 4.8% to $2.35 billion on the back of gains in Cranial & Spinal Technologies (CST) and Specialty Therapies. Additionally, gains in the Surgical & Endoscopy (SE) and Patient Monitoring & Respiratory Interventions (PMRI) divisions contributed to a 3.9% increase in Medical Surgical revenues.
Notably, higher insulin pump sales and contributions from the launch of the MiniMed 780G system led to a 12% increase in the company’s Diabetes revenues. Buoyed by this uptick, Medtronic raised its financial outlook for Fiscal Year 2024. Revenue for the year is anticipated to grow by 4.75% to 5% versus the prior growth expectation of 4.75%. EPS for the year is seen landing in the range of $5.19 to $5.21. Medtronic previously estimated EPS for the full year between $5.13 and $5.19.
Is MDT a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on Medtronic, and the average MDT price target of $90.25 points to a modest 6.91% potential upside in the stock. That’s after a nearly 13.2% rise in the company’s share price over the past three months.
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