Medtronic is "pointed in the right direction," an analyst said Tuesday after the medical giant beat fiscal third-quarter expectations. In response, MDT stock jumped.
The company has implemented internal changes that are starting to take hold, Edward Jones analyst John Boylan said in a note to clients. Meanwhile, inflation, supply chain and currency issues plaguing the broad medical industry appear to have less of a hold on Medtronic, he said. Notably, medical procedures in many of the company's markets are on the rise.
"It may be too early to say that Medtronic has completely turned the corner, but we believe the company is pointed in the right direction," he said.
On today's stock market, MDT stock advanced 0.8% to close at 85.49.
MDT Stock: Sales, Earnings Drop
During the January quarter, Medtronic earned $1.30 per share, minus some items. Earnings dropped 4% but came in ahead of the company's own expectations. Analysts polled by FactSet expected $1.27 in adjusted earnings per share.
Sales also dipped a fraction to $7.73 billion, but beat MDT stock analysts' forecasts for $7.54 billion.
The best growth came from Medtronic's neuroscience segment. Excluding the impact of exchange rates, sales rose 8.5% to $2.25 billion. The cardiovascular business also grew 6.5% to $2.77 billion. Only the medical-surgical unit saw a decline of 1.6% to $2.14 billion.
For the year, Medtronic raised the low end of its earnings outlook. The company now expects to earn $5.28 to $5.30 per share. The midpoint was one penny lower than MDT stock analysts' call. Medtronic also expects sales to grow 4.5% to 5% organically.
Early Tuesday, MDT stock was making a run for its 200-day line, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
