Medtronic Stock Earnings Guidance Lowered for Q2 FY 2023

Medtronic Stock (MDT:NYE) Analysis:

Last Closing Price: $76.48

Consensus Analyst Rating: Hold

12-Month Price Target: $94.93

Market CAP: $105.24 Billion

 

Medtronic stock (MDT:NYE) shares dipped lower in pre-market trading on Tuesday after the company cut its full-year earnings guidance in its Q2 financial report for fiscal 2023, citing unfavorable currency impact.

The reported revenue for the quarter decreased 3% year-over-year to $7.6 billion, falling short of expectations due to a $457 million negative impact from foreign currency translation.

Despite slower supply recovery or procedure volumes and pricing pressure from mass procurements in China, revenue climbed 2% YoY on an organic basis.

Ahead of the earnings call, CEO Geoff Martha stated, “Slower-than-anticipated procedural and supply recovery led to revenue below our estimates this quarter.” He described the steps taken to improve overall performance, such as simplifying the company’s structure and consolidating the supply chain.

Respiratory, Gastrointestinal, and Renal (RGR) divisions underperformed, causing Medical Surgical sales to fall short of analyst estimates by 10% YoY to $2.1 billion. However, the segment’s organic revenue decreased by only 1% year-over-year, excluding the impact of ventilator sales, in response to stronger COVID-driven demand last year.

Despite a 2% YoY dip, Cardiovascular revenue reached $2.8 billion in line with analyst projections, while Neuroscience revenue climbed 2% YoY to $2.2 billion, beating Wall Street’s expectations. Despite the lack of new product approvals, Diabetes sales exceeded analysts’ expectations, reaching $556 million with a 5% YoY drop.

Geographically, the United States led sales growth with a 2% YoY increase to produce $4.1B, but revenue from non-U.S. developed regions decreased 13% YoY to generate $2.2B.

Non-GAAP gross margin for the period decreased to 67.6% from 68.2% in the prior year period, while GAAP net income for the quarter decreased 67% YoY to $427M due to a $764M income tax reserve adjustment reflecting a previously reported court ruling.

Medtronic stock (MDT) cut its full-year non-GAAP EPS expectations to $5.25 – $5.30 from the previous range of $5.53 – $5.65 and the consensus estimate of $5.53. The foreign currency impact was 18 cents.

However, the business anticipates its growth to accelerate in the second half of fiscal year 23 to 3.5% – 4.0% on an organic basis, while increasing the expected negative FX effect from $1.4B – $1.5B to $1.74B – $1.84B.

Analysts rate InMode Stock (INMD:NSD) with a Strong Buy rating and a $49 target

Jefferies Financial LLC rates InMode stock as Buy with $40 price target.

Based on the InMode Stock Forecast from 4 analysts, the average analyst INMD stock price target is USD 49.14 over the next 12 months. InMode Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of INMD stock forecast is Bullish, which is based on 10 positive signals and 4 negative signals. At the last closing, InMode stock price was USD 34.73InMode stock price has changed by +2.84% over the past week, +1.98% over the past month and -59.23% over the last year.

 

About InMode Ltd. (INMD:NSD):

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women’s health conditions and procedures. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.

 

What we like:

High market capitalization

InMode stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

InMode stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

InMode stock had positive total cash flow in the most recent four quarters.

Positive free cash flow

InMode stock had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

InMode stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

InMode stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

INMD stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility

The total returns for INMD stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

INMD stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

INMD stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

InMode stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Fundamental Analysis for Nano X Imaging Ltd. (NNOX:NSD) is Bearish

Stock Target Advisor’s own stock analysis of Nano X Imaging Stock (NNOX Stock) is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, Nano X Imaging stock price was USD 12.33Nano X Imaging stock price has changed by +0.93% over the past week, -1.74% over the past month and -45.63% over the last year.

Based on the Nano X stock forecasts from 9 Crowd Analysts, the average analyst target price for Nano X is USD 15.84 over the next 12 months. The average Crowd Analyst rating is a Buy.

About Nano X Imaging Ltd. (NNOX:NSD):

Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The company provides teleradiology services and develops artificial intelligence applications to be used in real-world medical imaging applications. Its X-ray source is based on a digital micro-electro-mechanical systems semiconductor cathode. The company develops a prototype of the Nanox.ARC, a medical imaging system incorporating its digital X-ray source; and Nanox.CLOUD, a companion cloud-based software that would allow for the delivery of medical screening as a service. The company was founded in 2011 and is headquartered in Neve Ilan, Israel.

 

Recent Analyst Ratings for Nano’s Stock price:

Initiates Coverage Ladenburg Thalmann Buy USD 52 2021-04-19
Target Lowered Cantor Fitzgerald Overweight USD 70 » USD 67 2021-02-01
Reiterated by Oppenheimer Holdings Hold 2020-09-22
Initiated by Berenberg Capital Markets Buy USD 65 2020-09-15
Initiated by Cantor Fitzgerald Securities Overweight USD 70 2020-09-15
Initiates Coverage On Oppenheimer Holdings Perform 2020-09-15

 

What we like:

(Bullish Signals)

Low volatility:

The annual returns for NNOX stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

 

What we don’t like:

(Bearish Signals)

Poor risk adjusted returns:

Nano X Imaging stock is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of NNOX stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow:

NNOX stock had negative total cash flow in the most recent four quarters.

Negative free cash flow:

NNOX stock had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

NNOX stock has shown below median earnings growth in the previous 5 years compared to its sector.

Analysts rate Senseonics Holdings Inc. (SENS:NYE) with a Strong Buy rating and a $3 target

HC Wainwright maintains the $3 SENS stock price target with a Buy rating.

Based on the Senseonics stock forecast from 1 analyst, the average analyst SENS stock price target is USD 3.00 over the next 12 months. Senseonics Holdings Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of SENS stock forecast is Slightly Bullish, which is based on 5 positive signals and 4 negative signals. At the last closing, Senseonics stock price was USD 1.28Senseonics stock price has changed by -0.28% over the past week, -0.42% over the past month and -65.68% over the last year.

 

About Senseonics Holdings Inc. (SENS:NYE):

Senseonics Holdings, Inc., a medical technology company, develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes in the United States, Europe, the Middle East, and Africa. The company’s products include Eversense and Eversense XL, which are implantable CGM systems to measure glucose levels in people with diabetes through an under-the-skin sensor, a removable and rechargeable smart transmitter, and a convenient app for real-time diabetes monitoring and management for a period of up to six months. It serves healthcare providers and patients through a network of distributors and strategic fulfillment partners. The company has a collaboration agreement with the University Hospitals Accountable Care Organization. Senseonics Holdings, Inc. was founded in 1996 and is headquartered in Germantown, Maryland.

 

Most Recent Analyst Ratings for SENS Stock:

Maintains HC Wainwright Buy USD 6 » USD 3 2022-07-25
Initiates Coverage On HC Wainwright Buy USD 6 2021-08-19
Downgraded by SVB Leerink Outperform » Mkt Perform USD 3 2021-04-01
Target Raised by Stifel Nicolaus Research Buy USD 1 » USD 2.5 2021-03-05
Target Raised by SVB Leerink Outperform USD 1 » USD 3 2021-03-05
Downgrades Raymond James Capital Underperform 2021-03-05
Reiterated by Stifel Nicolaus Research Buy USD 1.85 2021-01-26
Downgrades BTIG Research Neutral 2021-01-21
Downgrades Craig Hallum Sell 2021-01-20
Reiterated by Raymond James Capital Hold 2020-08-16
Upgrades BTIG Research Buy USD 1 2020-08-11
Upgrades Craig Hallum Hold 2020-08-11
Target Lowered by SVB Leerink Outperform USD 2 » USD 1 2020-06-10
Target Lowered Stifel Nicolaus Research Buy USD 1.85 » USD 1 2020-06-10
Reiterated by BTIG Research Hold 2020-06-10
Target Lowered by UBS Sell USD 0.7 » USD 0.25 2020-05-21
Downgraded by BTIG Research Buy » Neutral 2020-03-13
Downgraded by Guggenheim Securities Buy » Neutral 2020-03-13
Target Lowered by Canaccord Capital Hold USD 1 » USD 0.75 2020-03-13
Reiterates Peel Hunt Buy 2019-11-15
Reiterates Liberum Capital Buy 2019-11-15
Maintains UBS Sell USD 1 » USD 0.75 2019-11-13
Downgrades Canaccord Capital Buy » Hold USD 2 » USD 1 2019-11-13
Downgrades Craig Hallum Buy » Hold USD 2.5 2019-11-13
Initiates Coverage On Stifel Nicolaus Research Buy USD 2 2019-10-23

 

 

What we like:

Underpriced compared to earnings:

SENS stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization:

Senseonics stock management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

SENS stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

SENS stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Low market capitalization:

SENS stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility:

The total returns for SENS stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value:

SENS stock price is trading high compared to its peers median on a price to book value basis.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

 

 

Analysts rate Glaukos Corp. (GKOS:NYE) with a Buy rating and a $55 target

Citigroup targets up the GKOS stock price to $54.

Based on the Glaukos Corp stock forecasts from 3 analysts, the average analyst Glaukos stock price target is USD 55.75 over the next 12 months. Glaukos Corp’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Glaukos stock is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, Glaukos stock price was USD 57.01Glaukos stock price has changed by +8.46% over the past week, +4.03% over the past month and -0.61% over the last year.

About Glaukos Corp. (GKOS:NYE):

Glaukos Corporation, an ophthalmic medical technology and pharmaceutical company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. The company’s product pipeline includes iStent Infinite, a three stents product that is designed for use as a standalone procedure in patients with refractory glaucoma; and iDose TR, a targeted injectable implant based on its micro-scale device-platform that is designed to deliver therapeutic levels of medication. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in San Clemente, California.

 

Most Recent Ratings for Glaukos:

 

 

What we like:

Positive cash flow:

Glaukos stock had positive total cash flow in the most recent four quarters.

Superior Revenue Growth:

GKOS stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Low market capitalization:

Glaukos stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced compared to earnings:

GKOS stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

GKOS stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

GKOS stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Glaukos stock news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative free cash flow:

Glaukos stock had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Glaukos stock has shown below median earnings growth in the previous 5 years compared to its sector