FINWIRES · TerminalLIVE
FINWIRES

Medtronic Tops Fiscal Fourth-Quarter Estimates, Guides to Higher Full-Year Earnings

By
Medtronic Tops Fiscal Fourth-Quarter Estimates, Guides to Higher Full-Year Earnings

Medtronic (MDT) reported better-than-expected fiscal fourth-quarter results on Wednesday, while the medical-device maker projected earnings and organic revenue growth for the current year.

In the three months ended April 24, adjusted earnings fell to $1.55 a share from $1.62 a year earlier, topping the consensus of $1.54 in a FactSet survey. Revenue rose 9.9% to $9.81 billion, above analysts' estimate of $9.62 billion. On an organic basis, excluding currency and other items, sales gained 6.6%.

Medtronic shares climbed 4.9% in Wednesday trading and are down 19% this year.

"We are pleased to have delivered results ahead of expectations on both revenue and EPS," Chief Financial Officer Thierry Pieton said in a statement. "As we look to (fiscal 2027), we are entering the year with strong momentum, a resilient operating foundation, and a clear path to deliver durable growth."

For fiscal 2027, the company expected adjusted EPS of $5.90 to $6, reflecting growth of 6.7% to 8.5%. Analysts project EPS of $6.05. The company said foreign exchange should have a neutral to 1% accretive impact.

Medtronic expects organic revenue to rise 6.8% to 7.3% for the full year, compared with 5.8% growth in fiscal 2026.

Revenue in the cardiovascular portfolio climbed 14% to $3.8 billion in the fourth quarter, buoyed by a 22% increase in cardiac rhythm and heart-failure products. Neuroscience sales rose 5% to $2.75 billion, and medical surgical revenue advanced 8% to $2.39 billion. Diabetes revenue climbed 15% to $837 million, supported by growth in insulin-pump and sensor technologies.

CEO Geoff Martha said the company continued to see strength across major businesses, including cardiac rhythm management, cranial and spinal technologies, and surgical, and is building momentum in its highest-growth opportunities.

Price: $77.37, Change: $+3.62, Percent Change: +4.91%

Related Articles

Macy's Raises Full-Year Outlook as First-Quarter Earnings Unexpectedly Rise
US Markets

Macy's Raises Full-Year Outlook as First-Quarter Earnings Unexpectedly Rise

Macy's (M) raised its full-year outlook on Wednesday as the department store operator's fiscal first-quarter earnings unexpectedly increased on an annual basis.The company now anticipates adjusted earnings to come in between $2 and $2.20 a share for fiscal 2026, up from its previous guidance of $1.90 to $2.10. The current consensus on FactSet is for non-GAAP EPS of $2.09. Shares of the company gained 3% in the most recent premarket activity.Sales are pegged at $21.5 billion to $21.75 billion for the ongoing fiscal year, up from the prior forecast of $21.4 billion to $21.65 billion. The Street is looking for $21.59 billion. Comparable owned-plus-licensed-plus-marketplace sales are projected to increase by 0.5% to 1.2%, compared with the previous outlook for a decline of 0.5% to growth of 0.5%.Macy's said its guidance continues to reflect prudence and recognition that macro and geopolitical factors could weigh on discretionary spending. The outlook still assumes that tariffs will have a larger impact in the first half versus the second, and doesn't include potential receipts from tariff refunds.In February, the US Supreme Court invalidated President Donald Trump's reciprocal tariffs enacted under the International Emergency Economic Powers Act.Last month, department store chain Kohl's (KSS) reiterated its full-year outlook, while retailer Target (TGT) lifted its sales growth guidance for fiscal 2026.For the three-month period ended May 2, Macy's adjusted EPS increased to $0.13 from $0.11 the year before, defying the average analyst estimate on FactSet for a decrease to $0.03. Sales, inclusive of store closures, inclined to $4.68 billion from $4.6 billion, ahead of the Street's view for $4.61 billion."We're off to a strong start to the year, exceeding expectations for the fifth consecutive quarter as our bold new chapter strategy continues to build momentum," Chief Executive Tony Spring said in a statement. "We're confident in our path to sustainable, profitable growth."Comparable sales moved up 3% year over year in the first quarter. By brand, Macy's comparable sales advanced 1.6% while Bloomingdale's climbed 10%. Bluemercury comparable sales moved 6.4% higher.

$M
Stocks Mostly Down Pre-Bell as Traders Assess Latest Middle East Developments
US Markets

Stocks Mostly Down Pre-Bell as Traders Assess Latest Middle East Developments

The main US stock measures were mostly trending lower in Wednesday's premarket activity as traders assess the latest developments in the Middle East.The S&P 500 edged down 0.1% and the Dow Jones Industrial Average declined 0.4%, while the Nasdaq gained 0.2% before the opening bell. All three indexes recorded new closing highs on Tuesday.President Donald Trump said in a podcast interview that Iran has agreed not to have nuclear weapons, several media outlets reported Wednesday. In a social media post on Tuesday, Trump said negotiations between the US and Iran were "going on continuously."Earlier in the week, Iranian state-affiliated outlet Tasnim reported that the country suspended talks with the US in retaliation to Israel's military action in Lebanon.The US Central Command said Tuesday that its forces "successfully defeated" multiple Iranian ballistic missiles and drones and launched defensive strikes following "attempted attacks" by Tehran across the Middle East.Iran reportedly launched a wave of missile and drone attacks toward Kuwait and Bahrain in a major escalation of regional tensions. Kuwait said a number of "hostile drones" targeted its airport, causing significant material damage and injuring several people.West Texas Intermediate crude oil increased 2.6% to $96.17 a barrel in premarket action, while Brent advanced 2.5% to $98.42."Crude oil continues to trade from one headline to the next, making it increasingly difficult for traders to maintain conviction beyond a few hours," Saxo Bank said in a Tuesday report. "Global energy markets continue to tighten, with the main focus remaining on the Strait of Hormuz, a vital shipping artery that remains effectively shut, sustaining concerns about supply disruptions and elevated energy prices."Treasury yields were up before the open, with the two-year rate rising 2.9 basis points to 4.08% and the 10-year rate adding 3 basis points to 4.49%.The Organization for Economic Cooperation and Development on Wednesday cut its global growth outlook for 2026, warning that a prolonged war between the US and Iran could have "longer-lasting negative consequences."The ADP Employment report for May is out at 8:15 am ET. On Tuesday, official data showed that US job openings hit their highest level in almost two years in April, while hiring and layoffs fell.Wednesday's economic calendar also has the weekly mortgage applications bulletin at 7 am. The purchasing managers' index composite final report from S&P Global (SPGI) for May posts at 9:45 am, followed by the Institute for Supply Management's services index for the same month at 10 am.The weekly EIA domestic petroleum inventories report is due at 10:30 am. The Federal Reserve's Beige Book, a compilation of economic and business reports from the 12 regional Fed branches, is out at 2 pm.Fed Governor Michael Barr is scheduled to speak at 9 am, while Dallas Fed President Lorie Logan speaks at 4 pm.The Fed may need to raise interest rates should inflationary pressures persist, Cleveland Fed President Beth Hammack said Tuesday. "If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost," Hammack said in prepared remarks for an event in Ohio.Shares of Palo Alto Networks (PANW) declined 3.7% pre-bell following the company's latest quarterly results. Marvell Technology (MRVL) climbed 14% after Nvidia (NVDA) Chief Executive Jensen Huang reportedly said the company could be the next chip manufacturer to join the trillion-dollar club.Broadcom (AVGO), CrowdStrike (CRWD), Veeva Systems (VEEV) and Five Below (FIVE) are expected to release their latest earnings after the markets close. Medtronic (MDT), Macy's (M), Ollie's Bargain Outlet (OLLI) and Thor Industries (THO) post their financial results before the bell, among others.Gold slipped 0.7% to $4,488 per troy ounce, while bitcoin inched 0.3% higher to $67,127.

$^DJI$^IXIC$^SPX$AVGO$CRWD$FIVE$M$MDT$MRVL$OLLI$PANW$THO$VEEV
Australian Industry Easing, Facing Energy Crisis: Ai Group Report
US Markets

Australian Industry Easing, Facing Energy Crisis: Ai Group Report

Persian Gulf turmoils aggravated an already softening Australian industrial sector in May, reported the Australian Industry Group (Ai Group) on Wednesday.The Australian Industry Index "remained weak" in May, declining to a negative seasonally adjusted 26.5 from a negative 25.5 in April, due in part to the "energy crisis, which is weighing heavily on new orders," reported Ai Group.A reading below zero on the Ai Group Industry Index indicates that the manufacturing, and related services sectors are contracting, compared to the previous month.Australian manufacturers in May reported widespread delays in orders and capital outlays, while the future path of energy supplies and prices remains unresolved, said Ai Group.In addition, in May manufacturers faced rising costs of operation, even as easing demand limited the capacity to raise prices to customers."Rising input costs (28%) remained the dominant pressure on businesses in May, with widespread reports of higher fuel, freight and raw material costs, including plastics, resins, packaging and metals," said AI Group. "Wages growth picked up, adding to ongoing labor cost pressures."Some industry leading-indicators pointed lower in May. The Ai Group new orders sub-index declined to negative 34.6 in May from negative 28.3 in April, pointing to waning demand."Businesses reported a sharp decline in new orders, with customers scaling back re-orders and forward pipelines thin as uncertainty suppresses new investments," said Ai Group.Services related to manufacturing businesses also faced challenging conditions in the month. The Ai Group business-oriented services index for May fell to negative 33.3, from negative 19.6 in April, reported Ai Group.The Ai Group business-oriented services index covers utilities, technical services, supply chain, and transport providers.A large share of services businesses "reported shortages of skilled labour, the impact of higher interest rates, uncertainty, material costs and supply constraints," said Ai Group.The business services trend index in May struck the lowest level since 2020, in the COVID-19 pandemic era, according to Ai Group.

$^AXJO