Medtronic (NYSE: MDT) experienced a 2.8% decline in its stock price earlier today, following the release of its fiscal Q4 2024 earnings report. Despite surpassing earnings predictions, the company's stock failed to rally.

Prior to the earnings announcement, analysts projected a profit of $1.45 per share for Medtronic. However, the company managed to beat expectations by reporting a profit of $1.46 per share. Similarly, Medtronic exceeded the projected sales estimates of $8.4 billion by reporting $8.6 billion in sales.

Unfortunately, the positive earnings news was marred by some concerning factors. Although Q4 sales surpassed expectations, they only grew by about 0.5% compared to the previous year. Additionally, while Medtronic claimed a profit of $1.46 per share, this amount did not include certain costs that the company considers to be one-time in nature. When calculated based on generally accepted accounting principles (GAAP), Medtronic's actual earnings per share was $0.49, reflecting a decline of 44% year over year.

Despite the mixed Q4 results, Medtronic's full-year fiscal 2024 performance showed stronger figures. The company achieved a 4% growth in sales, amounting to $32.4 billion, while earnings were down by only 2%. Medtronic's GAAP profit per share for the full year stood at $2.76.

Looking ahead to fiscal 2025, Medtronic management provided guidance indicating sales growth between 3% and 4%, reaching approximately $33.4 billion, in line with the expectations of Wall Street. Similarly, earnings guidance predicted a 4% to 5% growth, resulting in around $5.45 per share, non-GAAP, in line with expectations as well.

However, the lack of stronger growth projections seems to be a concern for investors. With a valuation of 27 times earnings, Medtronic needed to promise robust growth in the coming year to maintain its current valuation. Falling short of these expectations has likely contributed to the decline in stock price.

In conclusion, Medtronic stock appears to be overpriced and investors are responding accordingly. The company's failure to deliver more promising growth projections for the next year has affected investor confidence.

Please note that this article is based on information from The Motley Fool and does not constitute financial advice.