Medical technology firm Medtronic (MDT) will release its fiscal Q1 2025 financials on August 20. Analysts forecast that the company will report earnings of $1.20 per share, matching the earnings from the same quarter last year. Meanwhile, analysts expect revenues of $7.90 billion, reflecting a 2.6% year-over-year increase, according to TipRanks’ data.
In terms of share price growth, MDT stock increased 7.3% over the past year and 4.5% year-to-date. Interestingly, Medtronic has an encouraging earnings surprise history. The company exceeded earnings estimates in eight out of the previous nine quarters.
Insights from the TipRanks Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bulls have pointed out that Medtronic reaffirmed its financial guidance for both the first quarter of fiscal year 2025 and the full year, reducing the likelihood of any significant negative surprises. They also highlighted that the company’s U.S. launch of the 780G product has exceeded expectations, which is encouraging. Further, they noted that MDT has secured FDA approval for its next-generation continuous glucose monitor (CGM), Simplera.
Meanwhile, bears argue that Medtronic’s higher operating expenses have resulted in a lower-than-expected operating margin. They also express concerns that key growth initiatives aren’t materializing, and the market for Medtronic’s products is slowing down.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 3.53% move in either direction.
Is MDT a Good Stock to Buy Now?
Overall, the Street has a Moderate Buy consensus rating on MDT stock, alongside an average price target of $94.00. However, analysts’ views on the stock are likely to change once the company reports its Q2 earnings tomorrow.
