Medtronic Earnings: Here’s Why Investors Are Not Happy Now

Medtronic, Inc. (NYSE:MDT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.75%.

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Medtronic, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.71% to $0.93 in the quarter versus EPS of $0.84 in the year-earlier quarter.

Revenue: Rose 2.78% to $4.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medtronic, Inc. reported adjusted EPS income of $0.93 per share. By that measure, the company beat the mean analyst estimate of $0.91. It missed the average revenue estimate of $4.03 billion.

Quoting Management:“We remain committed to delivering dependable growth in a changing healthcare environment as reflected in our third quarter performance,” said Omar Ishrak, Medtronic chairman and chief executive officer. “Several businesses and regions contributed to our steady growth this quarter, and we are focused on effectively managing headwinds and tailwinds to deliver balanced and consistent overall performance.”

Key Stats (on next page)…

Revenue decreased 1.66% from $4.1 billion in the previous quarter. EPS increased 5.68% from $0.88 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.03 and has not changed. For the current year, the average estimate has moved up from a profit of $3.66 to a profit of $3.68 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)