Medtronic Supplier Issue Trumps Beat And Raise

 Medtronic (MDT) stock slumped Tuesday despite beating fiscal second-quarter expectations after a supplier issue impacted its cardiac ablation division.

Cardiac ablation is a minimally invasive procedure to treat irregular heart rhythm. The whole unit had flat sales. Pulsed field ablation — which uses electrical pulses to treat abnormal heart rhythm — had "strong growth," helping offset declines in cryoablation. Cryoablation uses extreme cold to destroy abnormal tissue.

"New product sales in cardiac ablation solutions did not offset the slower sales of legacy products," Edward Jones analyst John Boylan said in a client note. "New product sales were negatively affected by a supplier disruption that may be behind it."

Medtronic stock fell 3% to 85.01. Medtronic stock broke out of a flat base with a buy point at 91.49. Savvy investors are encouraged to cut their losses when a stock falls 6% to 7% below the entry. Medtronic stock is roughly 7% below its buy point.

Medtronic Stock: Diabetes Remains Strong

Across all products, Medtronic's sales climbed 5.3% on a strict, as-reported basis to $8.4 billion, beating the forecast of analysts polled by FactSet for $8.28 billion. Organically, sales increased 5%. Adjusted earnings also rose 1% to $1.26 per share, topping expectations by a penny.

Diabetes sales did well, Boylan noted. Revenue from that segment jumped 12.4% on a reported basis and 11% organically to $686 million. Evercore ISI analyst Vijay Kumar said analysts called for a slightly lower $663 million. Kumar projected $658 million in sales.

https://www.investors.com/news/technology/medtronic-stock-medtronic-earnings-q2-2025/