Medtronic plc ($MDT) Earnings (Q1 FY23)

 Medtronic plc ($MDT) Earnings and Opinion:


Medtronic is a company in the Healthcare sector and operates in the Medical Devices industry. The company manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Medtronic was founded in 1949 and is currently headquartered in Dublin, Ireland. The company made its debut on the stock market in 1978.

Medtronic Earnings Results:

  • Revenues of $7.37B beating expectations of $7.22B
  • Gross Profit of $4.9B beating expectations of $4.82B
  • Operating Income of $1.77B beating expectations of $1.76B
  • Adjusted EPS of $1.13 beating expectations of $1.12
  • Guidance was higher than consensus estimates on both metrics
Opinion:
Medtronic is currently moving lower today, after reporting earnings before the market opened this morning. This is weird, due to the fact that they were able to beat estimates on all metrics except the margins. The main thing being credited to the fall in price is that adjusted profit and dales declined. It has been a trend for the company for a little time, as they are seeing metrics decrease compared to numbers they used to have. I think it may be a little bit of an overreaction, the earnings seemed to be fine, and the margins seem pretty solid in my opinion. As far as valuation goes, the P/E ratio is at 23.54 which is far below the industry average, which is in the 40's. For P/S the ratio is 3.76, which is also below the industry average of 5. For profitability measures, I would like to see ROA and ROE increase a little bit, just for comfort. The growth seems to dip next year, but then picks up to an average of 5% a year. In terms of cash and debt, the debt outweighs the cash, but the current ratio is 1.87. This means it shouldn't be too much of a concern. In my opinion, I am not a big fan of healthcare stocks. Medtronic is definitely a more established business. I just think they need to figure out why sales are falling and get back on track to the better earnings days. I think it is undervalued, so if you have aspirations to purchase this stock, you have a pretty good chance here. I am going to stay out of this one, but keep a close eye to see what adjustments are made.

*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, CSI Market

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more