Medical technology company Medtronic (MDT) delivered upbeat fiscal Q1 2021 results for the period ended July 30, 2021. Revenue and earnings came in above consensus estimates driven by solid execution and procedure recovery. On August 24, MDT stock jumped 3.18% and closed the day at $132.57.
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Revenue was recorded at $7.99 billion, surpassing consensus estimates of $7.85 billion. The 23% year-over-year increase in revenue reflected the impact of a strong recovery from the COVID-19 pandemic that saw an uptick in elective procedures.
In other positive news, adjusted net income increased 128% year-over-year to $1.91 billion. Additionally, adjusted EPS increased 127% to $1.41 compared to the same quarter last year, surpassing consensus estimates of $1.32. (See Medtronic stock charts on TipRanks)
Markedly, Medtronic recorded significant market share gains across its key businesses, including Cranial & Spinal Technologies, Cardiac Rhythm Management, and Surgical Innovations. According to CEO Geoff Martha, there are solid opportunities ahead, especially in the surgical robotics business and renal denervation.
Furthermore, Martha stated, “These opportunities, combined with the broader investments we’re making in our pipeline, set us up well to accelerate our top line growth.”
Buoyed by the Q1 performance, management has reiterated its revenue growth outlook, while raising its EPS outlook for the Fiscal year 2022. Consequently, the company is projecting revenue growth of 9% on an organic basis. Additionally, Fiscal 2022 EPS has been raised from the prior guidance of $5.60 to $5.75 to the new range of $5.65 to $5.75.
In addition, the focus remains on generating strong returns for shareholders by growing dividends.
Yesterday, Piper Sandler analyst Matthew O’Brien reiterated a Buy rating on the stock and raised the price target to $152 from $140, implying 14.66% upside potential to current levels.
The price target increase came on Medtronic delivering solid fiscal Q1 results, which showed strong organic growth. Notably, the analyst views the guidance as conservative.
Consensus among analysts is a Strong Buy based on 14 Buys and 1 Hold. The average Medtronic price target of $144.07 implies 8.67% upside potential to current levels.
MDT scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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