What To Expect From Medtronic Earnings Next Week? An Analyst Answers

Needham believes that Medtronic Plc MDT has a strong product cycle that could drive a growth re-acceleration as procedure volumes normalize.
The analyst expects Medtronic to beat consensus F1Q23 revenue and EPS but sees that management might lower its FY23 financial guidance amid currency headwind.
Needham says that current guidance requires a steep revenue and EPS growth ramp through FY23, and the analyst lacks confidence in Medtronic's ability to execute in a challenging macro environment with multiple factors outside its control.
CEO Geoff Martha is shifting Medtronic's focus towards gaining market share and revenue growth, but its performance relative to its competitors has been mixed in recent quarters.
Martha has indicated that Medtronic will M&A and/or divestitures to drive its weighted average market growth rate higher.
According to the analyst, the Diabetes and Spine businesses could be considered for either sales and/or spin-offs but don't expect any immediate value creation for shareholders if a transaction materializes.
Medtronic is scheduled to release Q1 FY23 earnings on Tuesday, August 23.
Price Action: MDT shares are down 0.47% at $94.79 on the last check Thursday.