Medtronic Stock Falls After Q4 Earnings and M&A Deal: Here's Why
Portfolio Pulse from Vandana Singh
Medtronic reported Q4 FY23 sales of $8.54 billion, up 5.6% Y/Y, beating expectations. The company announced a dividend increase to $0.69/share and expects FY24 organic revenue growth of 4.5%-4.5%. Medtronic has agreed to acquire Korea-based EOFlow Co Ltd for $738 million, with the deal expected to close in H2 2023.
May 25, 2023 | 12:57 pm
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Medtronic's Q4 sales beat expectations, dividend increased, and the company announced the acquisition of EOFlow Co Ltd for $738 million.
Medtronic's Q4 sales beat expectations and the company announced a dividend increase, which are positive factors for the stock. However, the acquisition of EOFlow Co Ltd and the stock's premarket decline of 3.95% may offset these positives, resulting in a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100