Medtronic Inc. Earnings: Profitable Quarter Accelerates Growth

S&P 500 (NYSE:SPY) component Medtronic Inc. (NYSE:MDT) reported its results for the third quarter. Medtronic provides products and therapies for medical professionals.

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Medtronic Earnings Cheat Sheet for the Third Quarter

Results: Net income for the medical appliances and equipment company rose to $935 million (89 cents per share) vs. $924 million (86 cents per share) in the same quarter a year earlier. This marks a rise of 1.2% from the year-earlier quarter.

Revenue: Rose 1.7% to $4.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medtronic Inc. reported adjusted net income of 84 cents per share. By that measure, the company fell in line with the mean estimate of 84 cents per share. Analysts were expecting revenue of $3.99 billion.

Quoting Management: “I am pleased that a majority of our business mix continued to report strong, consistent revenue growth in the upper single digits. However, this was masked by continued challenges in our U.S. ICD and Spine performance,” said Omar Ishrak, Medtronic chairman and chief executive officer. “Stabilizing these businesses along with delivering on our key strategic imperatives of improving execution, optimizing innovation, and accelerating globalization should position us well to deliver long-term sustainable growth.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 5.9% to $4.13 billion in the second quarter. The figure rose 7.3% in the first quarter from the year earlier and climbed 2.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company met estimates last quarter after topping forecasts in the previous quarter with net income of 84 cents versus a mean estimate of net income of 82 cents per share.

Net income has increased 9.3% year-over-year on average across the last five quarters. The biggest gain came in the second, when income climbed 53.9% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 98 cents a share to 97 cents over the last sixty days. For the fiscal year, the average estimate has moved up from $3.44 a share to $3.45 over the last ninety days.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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