Medtronic - Time to call the doctor?

Medtronic released its Q4'23 results and share prices tumbled after that.

It joins plenty of companies that saw their share prices tank after providing guidance below Wall Street estimates.

But what are the few things that you need to know about the company on top of the disappointing guidance?

Medtronic is a company that have multiple products in the healthcare sector.

Its products are widely used for diabetes, cardiovascular, medical-surgical, and neuroscience.

As there are technology breakthroughs in surgery, there is a need for Medtronic to innovate and launch new products to remain relevant.

The medical device business is highly lucrative. The gross margin of Medtronic for FY 23 is 65.7%.

Even though the medical device business might be an evergreen and profitable one, it is not spared by worrying economic climate.

For its latest quarter, revenue was lower due to slower predicted procedure and supply recovery.

As for guidance, due to unfavorable foreign currency impact, Medtronic is lowering its full-year non-GAAP EPS guidance to USD 5.25 - USD 5.30.

It did not sit well with Wall Street, hence the drop in stock prices.

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