Medtronic beats profit and revenue expectations, boosts dividend

Shares of Medtronic PLC
MDT,
-1.66%
slipped 0.1% in premarket trading Thursday, after the medical technology and services company reported fiscal fourth-quarter profit and sales that rose above expectations, citing a “strong recovery” in elective procedures, and boosted its dividend by 8.6%, but provided a less than upbeat full-year outlook. Net income for the quarter to April 30 rose to $1.36 billion, or $1.00 a share, from $646 million, or 48 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share grew to $1.50 from 58 cents, and beat the FactSet consensus of $1.42. Sales increased 36.5% to $8.19 billion, topping the FactSet consensus of $8.14 billion. Looking ahead, the company expects fiscal 2022 adjusted EPS of $5.60 to $5.75, compared with the FactSet consensus of $5.75. Separately, the company said it raised its quarterly dividend to 63 cents a share from 58 cents, with the new dividend payable July 16 to shareholders of record on June 25. The new annual dividend rate would lift the implied dividend yield to 2.00%, based on Wednesday’s stock closing price, while the implied yield for the S&P 500
SPX,
+0.19%
is 1.40%. The stock has gained 7.8% year to date, while the S&P 500 has advanced 11.7%.