Medtronic PLC (NYSE: MDT) has received a positive update from William Blair, which raised its earnings per share (EPS) estimates for the company for the fiscal year 2026. In a research report released on November 19, 2023, analyst B. Vazquez projected that Medtronic will achieve an EPS of $5.68, an increase from the previous estimate of $5.63. This revised estimate surpasses the current consensus forecast for the full year of $5.46.
In addition to the long-term outlook, William Blair provided estimates for Medtronic’s upcoming quarterly earnings. The forecast includes $1.39 EPS for the first quarter of 2027, $1.46 for the second quarter, and $1.83 for the fourth quarter, with a total EPS for fiscal year 2027 expected to be $6.16.
Recent Earnings Report and Market Response
Medtronic recently reported its quarterly earnings on November 18, 2023. The company announced an EPS of $1.36, exceeding analysts’ expectations of $1.31 by $0.05. The firm recorded revenue of $8.96 billion, outperforming the forecast of $8.86 billion. Year-over-year performance demonstrated a robust increase, with revenue rising by 6.6% compared to the same quarter in the previous year.
Medtronic’s return on equity was noted at 14.61% and its net margin was 13.63%. The company has set its guidance for fiscal year 2026 at an EPS range of $5.620 to $5.660.
On November 20, 2023, Medtronic’s stock price experienced a slight decline, trading down 0.3% to reach $100.05. The trading volume was 913,895 shares, significantly lower than the average volume of 7,499,413. Medtronic’s market capitalization stands at $128.33 billion, with a price-to-earnings (P/E) ratio of 27.58 and a beta of 0.77. The stock’s performance has fluctuated between a one-year low of $79.29 and a high of $102.59.
Institutional Investments and Insider Activity
Recent trading activity indicates that institutional investors are adjusting their positions in Medtronic. For instance, Caerus Investment Advisors LLC initiated a new position valued at $636,000 in the third quarter. Meanwhile, Faithward Advisors LLC increased its stake by 7.5%, now owning 5,405 shares valued at approximately $515,000. Other firms, such as Sunbelt Securities Inc. and Captrust Financial Advisors, also expanded their holdings during the same period.
In a notable insider transaction, Executive Vice President Harry Skip Kiil sold 8,605 shares at an average price of $91.58, totaling approximately $788,046. Following this sale, Kiil retains 35,615 shares valued at around $3.26 million, reflecting a decrease of 19.46% in ownership. Conversely, Director William R. Jellison purchased 2,500 shares for a total of $230,925, doubling his position in the company.
Corporate insiders hold a minimal 0.26% stake in Medtronic, indicating that the majority of shares are held by institutional investors.
Medtronic continues to play a significant role in the healthcare sector, developing and manufacturing innovative medical therapies. Its diverse portfolio includes products for cardiovascular health, among other medical technologies. As the company navigates its fiscal outlook, investors will keenly observe its performance in the upcoming quarters.
