GALWAY, Ireland, March 6, 2025 /PRNewswire/ -- The board of directors of Medtronic plc (NYSE: MDT) on Thursday, March 6, 2025, approved the company's cash dividend for the fourth quarter of fiscal year 2025 of $0.70 per ordinary share. This quarterly declaration is consistent with the dividend increase announcement made by the company in May 2024. Medtronic is a constituent of the S&P 500 Dividend Aristocrats index, having increased its annual dividend payment for the past 47 consecutive years. The dividend ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q Commission File Number 001-36820 (Exact name of registrant as specified in its charter) Ireland 98-1183488 (State of incorporation) (I.R.S. Employer Identification No.) Building Two, Parkmore Business Park West Galway, Ireland (Address of principal executive offices) (Zip Code) +353 1 438-1700 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | ...

Core Viewpoint - Medtronic's mixed performance in Q3 fiscal 2025 led to a stock decline of over 7% due to revenue falling short of estimates, primarily impacted by a decline in medical-surgical unit sales [1][12]. Financial Performance - Q3 revenues were reported at $8.29 billion, slightly below the Zacks Consensus Estimate of $8.33 billion [1]. - The Diabetes segment grew by 8.4%, driven by strong demand for insulin delivery systems [2]. - Neuromodulation showed above-market performance, particularly in Pain Stim growth, with strong U.S. growth from the Inceptiv spinal cord stimulator launch [2]. - Year-to-date, the stock has gained 12.5%, outperforming the broader industry and sector [3]. Market Trends - Analysts have shown cautious optimism with mixed estimate revisions for fiscal 2025, with earnings estimates improving slightly to $5.46 per share [6]. - Medtronic's Q3 performance included a 22% surge in Cardiac Ablation Solutions and double-digit growth in leadless pacing and diabetes [8]. - The company expects revenue and EPS growth to accelerate in Q4, supported by its innovation pipeline and market expansion [10]. Competitive Position - Medtronic's stock is trading at a forward P/E of 15.60X, lower than the industry average of 22.58X, indicating a potentially attractive valuation [11]. - Key challenges include disruptions in the Medical Surgical segment due to shifts in U.S. distributor buying patterns, which impacted revenues by approximately 200 basis points [12]. - The company is facing competitive pressures in the stapling business but has seen growth in LigaSure Advanced Energy Products [13]. Operational Efficiency - Medtronic's trailing 12-month return on equity (ROE) is 14.07%, below the industry average of 16.71%, indicating less effective utilization of equity capital [15].

Core Viewpoint - Medtronic has received FDA approval for its BrainSense™ Adaptive deep brain stimulation (aDBS) technology, marking a significant advancement in personalized treatment for Parkinson's disease, which affects approximately one million people in the U.S. [1][9] Group 1: Product Innovation - The aDBS technology personalizes therapy based on real-time brain activity, enhancing symptom control and reducing the need for manual adjustments by patients [3][4] - Medtronic's BrainSense™ Electrode Identifier (EI) allows for faster and more accurate programming of DBS settings, improving efficiency by 85% compared to traditional methods [7][8] Group 2: Clinical Impact - The ADAPT-PD trial, led by prominent neurologists, demonstrated the safety and effectiveness of aDBS compared to continuous DBS, representing the largest assessment of its kind [5][6] - The adaptive nature of aDBS is expected to significantly improve symptom control for patients experiencing motor fluctuations and dyskinesias [6][7] Group 3: Market Position - Medtronic is the only company offering a real-time adaptive DBS system, positioning itself as a leader in integrating brain-computer interface technology into therapeutic solutions for neurological disorders [4][9] - With over 40,000 DBS patients served globally, the launch of BrainSense™ Adaptive DBS is the largest commercial rollout of BCI technology to date [4][9]

Core Insights - Medtronic's growth efforts in medical technology, particularly through its pulsed field ablation (PFA) technology, are beginning to yield results, although Q3 results fell short of consensus forecasts, indicating a longer timeline for stock price recovery [1][2] - The company reported Q3 net revenue of $8.3 billion, a 2.5% increase year-over-year, with organic growth of 4.1%, driven mainly by a nearly 10.5% increase in the Diabetes segment, while the Medical/Surgical segment contracted by 0.4% [2][4] - Improved gross and operating margins were reported, with adjusted EPS growing by 7%, outperforming expectations by 220 basis points, indicating enhanced operational efficiency and growth outlook [3][5] Financial Performance - Q3 results were described as decent but below analyst expectations, with revenue growth expected to accelerate in Q4, projecting an annual increase of 4.75% to 5% [4][5] - The company maintains a healthy balance sheet supported by strong cash flow, allowing for solid dividends and aggressive share buybacks, despite a 3% decline in equity [5][6] - Analysts have a positive sentiment towards Medtronic, with 40% of ratings at Buy and a consensus price target of $95, indicating a potential upside of 7.78% [7][8] Market Outlook - Medtronic's stock shows signs of reversal with bullish market bias due to growth prospects and capital returns, although it remains within a trading range [8] - The stock's current yield is near 3%, providing an attractive option for investors while waiting for a breakout to higher price levels [8]

Core Viewpoint - Medtronic's shares declined by 7.3% following the announcement of its fiscal 2025 third-quarter results, which revealed a revenue miss despite better-than-expected earnings [1][2]. Financial Performance - Medtronic reported third-quarter revenue of $8.3 billion, reflecting a year-over-year increase of 2.5%, but slightly below the Wall Street estimate of $8.33 billion [2]. - The diluted earnings per share (EPS) were reported at $1.01 under GAAP, while the adjusted EPS was $1.39, marking a 7% increase year-over-year and surpassing the analysts' average estimate of $1.35 [2]. Revenue Concerns - The revenue miss is attributed to a change in U.S. distributor buying patterns, as explained by CEO Geoff Martha, who indicated that this disruption is expected to be resolved soon [3]. - Despite the revenue miss, the company projects organic revenue growth for fiscal 2025 to be between 4.75% and 5% [4]. Future Outlook - Medtronic anticipates adjusted EPS for the current fiscal year to be in the range of $5.44 to $5.50, with the midpoint exceeding the consensus Wall Street EPS estimate of $5.45 [4]. Investment Considerations - The stock may not appeal to growth investors, but it could be attractive to income investors due to a forward dividend yield of 3.24% [5]. - Medtronic is close to potentially joining the Dividend Kings, having a track record of 47 consecutive years of dividend increases [5].

Core Insights - Medtronic reported revenue of $8.29 billion for the quarter ended January 2025, reflecting a year-over-year increase of 2.5% [1] - The earnings per share (EPS) was $1.39, up from $1.30 in the same quarter last year, resulting in an EPS surprise of +2.21% against the consensus estimate of $1.36 [1] Revenue Performance - U.S. Revenue reached $4.24 billion, slightly below the average estimate of $4.28 billion, with a year-over-year change of +2.8% [4] - Worldwide revenue from Diabetes was $694 million, exceeding the average estimate of $676.84 million, marking an increase of +8.4% year over year [4] - Worldwide revenue from Neuroscience was $2.46 billion, matching the six-analyst average estimate, with a year-over-year change of +4.4% [4] - Worldwide revenue from Cardiovascular was $3.04 billion, slightly below the estimated $3.05 billion, reflecting a +3.7% change year over year [4] - Worldwide revenue from Medical Surgical was $2.07 billion, below the average estimate of $2.13 billion, indicating a year-over-year decrease of -3.5% [4] Segment Performance - Neuroscience - Specialty Therapies generated $419 million, close to the average estimate of $419.80 million, with a +3% year-over-year change [4] - Cardiovascular - Cardiac Rhythm & Heart Failure revenue was $1.55 billion, slightly above the estimated $1.54 billion, showing a +5.1% increase year over year [4] - Medical Surgical - Surgical & Endoscopy revenue was $1.60 billion, below the average estimate of $1.62 billion, reflecting a -1.2% change year over year [4] Stock Performance - Medtronic shares returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Medtronic plc reported adjusted earnings per share (EPS) of $1.39 for Q3 fiscal 2025, reflecting a 6.9% increase year-over-year and surpassing the Zacks Consensus Estimate by 2.2% [1] - Worldwide revenues reached $8.29 billion, marking a 2.5% year-over-year increase on a reported basis, but fell short of the Zacks Consensus Estimate by 0.4% [3] - The company maintains its fiscal 2025 organic revenue growth projection at 4.75-5% [10] Financial Performance - Adjusted EPS for the quarter was $1.39, while GAAP EPS was reported at $1.01, a 2% improvement from the previous year [1][2] - Gross margin expanded by 88 basis points to 66.5%, with research and development expenses decreasing by 2.9% to $675 million [9] - Adjusted operating margin increased by 161 basis points year-over-year to 25.6% [9] Revenue Breakdown - Cardiovascular segment revenues grew 5% organically to $3.04 billion, with notable increases in Cardiac Rhythm & Heart Failure sales [5] - Medical Surgical revenues totaled $2.07 billion, down 0.4% year-over-year organically [6] - Neuroscience revenues rose 5.2% organically to $2.46 billion, driven by growth in Neuromodulation [7] - Diabetes segment revenues increased 10.4% organically to $694 million, supported by the adoption of the MiniMed 780G system [8] Future Outlook - For fiscal 2025, adjusted EPS is expected to be in the range of $5.44-$5.50, with the Zacks Consensus Estimate at $5.45 per share [12] - The company anticipates adjusted revenue growth of 3.4-3.8% for fiscal 2025, with worldwide revenues estimated at $33.56 billion [11]

Core Insights - Medtronic Plc reported third-quarter 2025 sales of $8.29 billion, slightly missing the consensus estimate of $8.32 billion, while adjusted EPS was $1.39, surpassing the consensus of $1.36 [1][2] - The company experienced a year-over-year revenue increase of 2.5% and an organic growth of 4.1% [1] Revenue Breakdown - Cardiovascular segment revenue reached $3.04 billion, reflecting a 3.7% increase year-over-year and a 5% organic growth, with mid-single digit increases in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic segments [3] - Neuroscience revenues amounted to $2.46 billion, up 4.4% as reported and 5.2% organically, driven by low-double-digit growth in Neuromodulation [4] - Medical Surgical revenue was $2.07 billion, showing a decrease of 1.9% as reported and 0.4% organically, with flat results in Surgical & Endoscopy [4] - Diabetes revenue increased to $694 million, marking an 8.4% rise as reported and 10.4% organically [5] Guidance and Market Reaction - Medtronic reaffirmed its fiscal year 2025 organic revenue growth guidance of 4.75%-5%, with adjusted EPS expectations of $5.44-$5.50, compared to the consensus of $5.45 [5] - Following the earnings report, MDT stock declined by 5.94% to $87.30 in premarket trading [6]

Financial Performance - Medtronic reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and up from $1.30 per share a year ago, representing an earnings surprise of 2.21% [1] - The company posted revenues of $8.29 billion for the quarter ended January 2025, slightly missing the Zacks Consensus Estimate by 0.43%, but up from $8.09 billion year-over-year [2] - Over the last four quarters, Medtronic has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Medtronic shares have increased approximately 16.2% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The current Zacks Rank for Medtronic is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.61 on revenues of $8.85 billion, and for the current fiscal year, it is $5.45 on revenues of $33.56 billion [7] - The outlook for the Medical - Products industry is favorable, ranking in the top 31% of over 250 Zacks industries, suggesting that stocks in this sector are likely to outperform those in the bottom 50% [8]