6/23/2023 0 Comments Linkedin stock falls![]() ![]() Said Martha: “We’ve got to balance mitigating some of these headwinds with making sure that we’re making the right investments.” On the other hand, Martha told analysts today that he saw opportunities for Medtronic to reinvest in some of the top areas of medtech, including diabetes treatment tech, surgical robotics and pulsed-field ablation for treating atrial fibrillation (AFib). Medtech companies such as Medtronic have also had to navigate their health provider customers’ operational challenges and healthcare cost reduction efforts in China. companies in general are finding it more expensive to operate amid inflation, a strong dollar that makes it tougher to export, supply chain challenges and more. Along with divestitures, boosted R&D spending and tuck-in acquisitions such as EOFlow, Medtronic seeks to refocus and drive growth. There were no new details about the layoffs taking place at Medtronic amid significant cost reductions. Parkhill later added: “We thought it was prudent to start the year with guidance that sets us up for success.” The Wall Street analyst consensus for the new year has been revenue of $32.28 billion and EPS of $5.20. ![]() Medtronic also forecast adjusted EPS in the $5.00–$5.10 range for the year. “Given it’s the start of the year, we think it’s prudent for you to model at the lower end of that range,” CFO Karen Parkhill told analysts during the company’s earnings call. Medtronic officials are trying to strike a balanceįor the fiscal year ending in April 2024, Medtronic expects 4–4.5% revenue growth, implying revenue in the $32.0 billion–$32.3 billion range. The result was a penny ahead of The Street, where analysts expected EPS of $1.56 and revenue of $8.25 billion. Revenue was up 5.6%.Īdjusted to exclude one-time items - including $300 million in revenue from an IP agreement with Edwards Lifesciences Medtronic earned $1.19 billion, or 88¢ per share, off of $8.54 billion in revenue for the quarter ended April 28, 2023. “We’re confident in delivering durable revenue growth in the year ahead as we drive execution across our businesses.” Our accelerating revenue growth was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions,” CEO Geoff Martha said in a news release. “We had a strong finish to our fiscal year, with our fourth quarter top- and bottom-line results coming in ahead of expectations. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down more than 1%. By the afternoon, Medtronic stock was down more than 4% to $83.59 per share. Investors initially sent MDT shares down more than 5% this morning. However, its forecast for the new fiscal year came up short of The Street’s expectations. The world’s largest medical device company also announced an acquisition, planning to pay roughly $738 million for South Korea–based EOFlow and its EOFlow insulin delivery patch that a user can control using their smartphone. Whether that will make them feel better is another story, of course.+ today reported fourth-quarter results that beat the consensus forecast on Wall Street amid accelerating revenue growth. Weiner still utilizes a lot of it’s-okay-we’re-just-the-same-as-yesterday reassurances, but at least he is not ignoring the thorny issue for staffers. “When something like this happens at a company, you can witness very extreme, and often negative, reactions from people like the CEO and CFO, who can get into a blame game and create a cycle of negativity … While I’ve been his communications partner for many years, and am therefore quite biased, I wanted to share this video as a great demonstration of how to lead through change and how to use transparency and authenticity as a way to connect to your employees to let them know what’s really going on.” So, why pretend, wrote Stubo in a post titled “What to Say to Your Employees After Your Stock Loses 40% of Its Value.” The weak guidance was a particular issue, especially in this very nervous market for tech stocks and the selloff of the sector. Today, the head of comms for LinkedIn, Shannon Stubo, posted a video of CEO Jeff Weiner talking to employees about its 40 percent drop in stock value after the business networking company announced earnings that Wall Street did not like one little bit. ![]()
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