Medtronic Earnings: New Products Support a Strong Start to the New Fiscal Year

Medtronic kicked off its fiscal year with strong first-quarter results that are consistent with our full-year expectations. Though management has raised the lower end of its outlook, our projections remain bounded by the new range, and we’re leaving our fair value estimate intact. Though Medtronic’s business is typically characterized by some combination of waxing and waning products, we think there’s been progress in shifting the balance to more new products to maintain the mid-single-digit top-line growth management seeks. The recent introduction of key new technologies that offer relevant innovation also underscores Medtronic’s intangible assets that support its narrow economic moat.