Medtronic Earnings: Rising Revenue Helps Margins Expand, Profit Rises
S&P 500 (NYSE:SPY) component Medtronic Inc. (NYSE:MDT) reported its results for the fourth quarter. Medtronic provides products and therapies for medical professionals.
Investing Insights: What’s the Future of Microsoft’s Stock?
Medtronic Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the medical products rose to $991 million (94 cents per share) vs. $776 million (72 cents per share) in the same quarter a year earlier. This marks a rise of 27.7% from the year-earlier quarter.
Revenue: Rose 3.1% to $4.3 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Medtronic Inc. reported adjusted net income of 99 cents per share. By that measure, the company beat the mean estimate of 98 cents per share. Analysts were expecting revenue of $4.23 billion.
Quoting Management: “I am pleased with our improved revenue growth this quarter in a dynamic healthcare environment,” said Omar Ishrak, Medtronic chairman and chief executive officer. “Our growth was broad-based across our businesses and geographies, including strong U.S. launches of the Resolute Integrity drug-eluting stent and RestoreSensor spinal cord stimulator and strong growth in emerging markets. As we continue to focus on innovation, globalization, and execution, I see many opportunities for improved growth.”
The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose 1.2% and in the second quarter, the figure rose 53.9%.
The company beat estimates last quarter after meeting expectations in the third quarter with net income of 84 cents per share.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 87 cents. The average estimate for the fiscal year has remained at $3.45 per share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: