MDT Stock Slumps Despite Beating Quarterly Forecasts — Here’s Why

Early Thursday, Medtronic (MDT) beat fiscal fourth-quarter expectations, but MDT stock slumped on its light earnings outlook.




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The medical devices company reported adjusted earnings of $1.57 per share on $8.54 billion in fiscal fourth-quarter sales. On average, analysts polled by FactSet expected Medtronic to earn $1.55 per share and report $8.26 billion in sales.

In the year-earlier period, Medtronic earned $1.52 a share on $8.09 billion in sales.

For the year, Medtronic expects 4%-4.5% organic sales growth and adjusted profit of $5-$5.10 per share. MDT stock analysts predicted $32.28 billion in sales and earnings of $5.19 a share.

Medtronic also announced it will acquire insulin patch maker EOFlow for about $738 million. EOFlow is based in South Korea and makes a tubeless, wearable and fully disposable insulin delivery device.

In premarket trading on the stock market today, MDT stock fell 3.8% near 84.20. Shares are well above their 50-day and 200-day moving averages, according to MarketSmith.com.

Still, MDT stock only has a middling IBD Digital Relative Strength Rating of 60, putting shares narrowly in the top half of all stocks when it comes to 12-month performance.

More to follow.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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