Raymond James on Medtronic, Inc. (MDT) Earnings: 'All in, this result and guide fell short of our elevated expectations'
Raymond James analyst Jayson Bedford reiterated a Market Perform rating and {REMOVEPT} price target on Medtronic, Inc. (NYSE: MDT).
The analyst comments "F1Q revenue beat consensus (by ~2%), but this was due to FX and ‘Other’ revenue as organic growth of 4.8% y/y was in-line. Gross margin was solid, but operating margin missed. EPS beat and adj. EPS grew 2% y/y. FX helps revenue, but there is no change to the organic guide (~5%). Medtronic (MDT) raised its adj. EPS guidance due to FX and a lower tariff burden, but given these factors we would have thought the EPS guidance (which implies 2-3% y/y growth, 4-5% ex tariffs) would have been higher. All in, this result and guide fell short of our elevated expectations. That said, MDT announced two new Board of Directors members (tied to new shareholder Elliott’s involvement) to help spark new value creation initiatives."
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Shares of Medtronic, Inc. closed at $92.81 yesterday.