Medtronic, Inc. (MDT) Earnings Likely to Hinge on FY23 Guidance, BofA Securities Expects Y/Y Declines

BofA Securities analyst Travis Steed reiterated a Buy rating and $135.00 price target on Medtronic, Inc. (NYSE: MDT) ahead of FQ4 earnings this Thursday where official FY23 guidance is expected and will likely be the highlight.

The analyst stated "Three months ago MDT saw FY23 being around 5% rev growth (no plus) and low single digit EPS growth but since then supply chain got worse (avg medtech saw 50bps of incremental GM pressure which is worth 2 points of EPS growth for MDT) and FX got materially worse (our math is $1bn worse on revenue which could be a 1-2 point h/w to EPS - hedges make the EPS math difficult). These two headwinds suggest it is likely difficult for MDT to guide to EPS growth in FY23. MDT’s expectations for 5% rev growth in FY23 was dependent on the recovery which is playing out as expected but some uncertainty with China (7% of MDT) lockdowns and upcoming VBPs (spine/surgical stapling; 1-1.5% of exposure) likely leads MDT to guide to 4-5% for FY23, in our view."

For an analyst ratings summary and ratings history on Medtronic, Inc. click here. For more ratings news on Medtronic, Inc. click here.

Shares of Medtronic, Inc. closed at $102.53 yesterday.

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