Congrats to all.
Looks like layoffs postponed for now.
20 replies (most recent on top)
@c8 May 8th
@14x Financial Engineering(FE) has been going on for a long while by our rent seeking management. It is this same FE that brought us to the point we were in a state of vulnerability that an outfit like Elliot is able to get involved driving more of this FE as this is their specialty. These is nothing going on here for the benefit of the employees long term. Anything saying so is propaganda for masses.
The PTO restructuring was done to save the company money, that is for those states who allow separate sick PTO vs regular PTO means the company doesn't have to carry the sick PTO expense on the books as it doesn't have to be paid out if you quit or they let you go. So here is part of the profit for this quarter, it's just tidying up the books, but real revenue growth isn't there and that's why the stock isn't surging.
Medtronic will lay off 81 employees from a facility in Northridge, California, according to a state notice. The site is part of Medtronic's diabetes segment. Medtronic said it was aligning resources and determining the right structure ahead of a planned spinoff of the diabetes business into a separate, publicly traded company. https://lnkd.in/gnxW4bCw
I just took a dump
@a8 Spot on. Analysts always like top line growth because anything below can be manipulated a bit. Note that Medtronic has spent years tidying up generally accepted accounting practices (manipulating). Martha was hanging on by a thread. No CEO with power would let Elliot on the board. Now he has failed to generate improved profits despite top line growth. That is a problem because he is long term inept. He will inflict more hacking and slashing, not real improvement and efficiency, as he continues toward the door.
Next one is scheduled for May…
Markets not impressed.
If stocks were going up, would an email reassuring a successful Q3 be needed?
Pat-I’d like to solve the puzzle. What is releveling?
Oh yeah, 10 quarters ago...when Goff Martae was still in his tenure as the sh*ttest CEO of all time. Hardly a yardstick for good performance.
I will butt chug to a good earnings call.
Bye bye MIP .... no summer vacation for me
OP, once we get to Q4, Rifs are a tool to plan to future budgets in the next fiscal. True in all companies, well at least those that offer decent severance packages. So, Q3 results are largely immaterial because what matters is next years budget plan and that already has been baked. You may get to add some sprinkles on it with a good year end. But the size of the cake is set.
This is largely true for any large public company.
The truth is buried. More layoffs are coming while EM will be selling Medtronic piece by piece.
Elliot is not going to sit still with this result.
We are circling the drain. A slow train wreck. Management is rent seeking as long as possible. The investors like Elliot encourage selling off the most profitable businesses, and will most likely saddle the core with debt extracting what dollars they can while taking the last puffs off this cigar butt before tossing it to bankruptcy!
MDT stock dipped while our competitors are all up today (Stryker, Boston, Abbott, Intuitive). This is even at a time when the whole market is down.
What investors saw is drop in EPS and margin, hence why the stock dropped. Revenue doesn’t mean anything if you don’t show better free cash flow, margin, growth, and EPS YoY. If anything, more layoffs are coming since we can’t control margin and not being able sell products because of constant back order issues. If you look closely, restructuring/layoffs resulted in $89 million savings for Q3, even with that we had a decline in EPS. More serious layoffs are coming. Ever wonder why layoffs happened in a random Q3, look at the numbers closely.
Rip. Stock drop 5% on good news. Guess it wasnt good enough. Get ready for the chopping.