Medtronic (NYSE:MDT) is a leading global healthcare technology company, known for its innovative medical devices and therapies. As it prepares to release its quarterly earnings on February 18, 2025, investors are closely watching the company's financial performance. Analysts expect an earnings per share (EPS) of $1.36 and revenue of $8.32 billion, reflecting growth from the previous year.
Medtronic's stock recently closed at $92.20, a 0.93% increase from the previous day, though it lagged behind the S&P 500's 1.04% gain. Over the past month, MDT has risen by 6.97%, outperforming the Medical sector's 3.72% gain and the S&P 500's 3.92% increase. This strong performance indicates positive investor sentiment ahead of the earnings report.
The company's anticipated EPS of $1.36 represents a 4.6% increase from the same quarter last year, while projected revenue of $8.33 billion marks a 3% year-over-year growth. Despite a slight 0.7% decrease in earnings estimates over the past three months, Medtronic has a history of surpassing expectations, with an average earnings surprise of 1.99% over the last four quarters.
Medtronic's financial metrics provide further insight into its market valuation. With a price-to-earnings (P/E) ratio of 27.57 and a price-to-sales ratio of 3.58, the market values the company's earnings and revenue favorably. The enterprise value to sales ratio of 4.40 and enterprise value to operating cash flow ratio of 20.18 highlight the company's overall worth and cash flow efficiency.
The company's debt-to-equity ratio of 0.58 indicates a moderate level of debt, while a current ratio of 1.84 suggests strong liquidity. These figures, combined with an earnings yield of 3.63%, demonstrate Medtronic's solid financial health and its ability to manage short-term liabilities effectively. As the earnings release approaches, investors will be keen to see if Medtronic can continue its trend of exceeding expectations.
