Medtronic First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Medtronic (NYSE:MDT) will unveil its latest earnings on Tuesday, August 21, 2012. Medtronic provides products and therapies for medical professionals.

Medtronic Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 85 cents per share, a rise of 7.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 87 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 85 cents during the last month. Analysts are projecting profit to rise by 5.8% compared to last year’s $3.66.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 99 cents per share against a mean estimate of profit of 98 cents. The company fell in line with estimates in the third quarter of the last fiscal year.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 27.7% to $991 million (94 cents a share) from $776 million (72 cents a share) the year earlier, exceeding analyst expectations. Revenue remained steady at $4.3 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.62 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.04 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 28.4% to $5.86 billion while assets rose 2.2% to $9.52 billion.

Stock Price Performance: Between May 21, 2012 and August 15, 2012, the stock price rose $2.63 (7%), from $37.70 to $40.33. The stock price saw one of its best stretches over the last year between January 31, 2012 and February 7, 2012, when shares rose for six straight days, increasing 5.4% (+$2.08) over that span.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 53.9% in the second quarter of the last fiscal year and 1.2% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 1.1% in the third quarter of the last fiscal year after increasing in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With 10 analysts rating the stock as a buy, one rating it as a sell and 11 rating it as a hold, there are indications of a bullish outlook.

Wall St. Revenue Expectations: Analysts predict a decline of 1% in revenue from the year-earlier quarter to $4.01 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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