UPDATE: Medtronic (MDT) Misses Q4 EPS by 48c, Raises Dividend

Medtronic (NYSE: MDT) reported Q4 EPS of $0.58, $0.48 worse than the analyst estimate of $1.06. Revenue for the quarter came in at $6 billion versus the consensus estimate of $7.02 billion.

Guidance:

Given the uncertainty on near-term financial results caused by the COVID-19 pandemic, the company is not providing formal annual or quarterly financial guidance at this time.

Dividend Increase

The company today announced that on May 20, 2020, the Medtronic board of directors approved an increase in Medtronic’s cash dividend for the first quarter of fiscal year 2021, raising the quarterly amount to $0.58 per ordinary share. This would translate into an annual amount of $2.32 per ordinary share, an increase from the prior $2.16. Today's announcement marks the 43rd consecutive year of an increase in the dividend payment for Medtronic, a constituent of the S&P 500 Dividend Aristocrats index. Including today's increase, Medtronic's dividend per share has grown over 50 percent over the past 5 years and has grown at a 17 percent compounded annual growth rate over the past 43 years.

Medtronic has a strong track record of returning capital to its shareholders, including returning $3.6 billion in fiscal year 2020. The company remains committed to returning a minimum of 50 percent of its free cash flow to shareholders through dividends and share repurchases. The dividend is payable on July 17, 2020, to shareholders of record at the close of business on June 26, 2020.

“Our financial position remains strong, and we’re differentially using our balance sheet during the pandemic. Today, we announced a significant increase in our dividend, and we are purposely investing to drive not only a strong recovery, but also consistent, long-term growth,” said Martha. “As we emerge, the investments that we’ve made will be evident in our attraction and retention of top talent, and in the new, innovative products and solutions that we’ll offer physicians, patients, and healthcare systems.”

For earnings history and earnings-related data on Medtronic (MDT) click here.

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