Medtronic Earnings: Snaps Strong Streak with Profit Drop
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Medtronic Inc. Earnings Cheat Sheet
Results: Net income for the medical products fell to $646 million (63 cents per share) vs. $871 million (82 cents per share) a year earlier. This is a decline of 25.8% from the year-earlier quarter.
Revenue: Rose 1.8% to $4.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Medtronic Inc. reported adjusted net income of 88 cents per share. By that measure, the company fell in line with the mean estimate of 88 cents per share. It fell short of the average revenue estimate of $4.23 billion.
Quoting Management: “Our second quarter performance reflects the results of our ongoing focus to deliver consistent and dependable growth in a changing healthcare environment,” said Omar Ishrak, Medtronic chairman and chief executive officer. “Our growth was broad-based across several businesses and geographies, driven by continued stabilization of our end markets and the ongoing successful execution of new product launches.”
Last quarter’s profit decrease ends a four-quarter streak of profit increases. In the first quarter, net income rose 5.2% from the year earlier, while the figure increased 27.7% in the fourth quarter of the last fiscal year, 1.2% in the third quarter of the last fiscal year and 53.9% in the second quarter of the last fiscal year.
The company has met estimates for two consecutive quarters. It reported net income of 85 cents in the first quarter.
Looking Forward: The average estimate for the third quarter remains unchanged at 90 cents a share. The average estimate for the fiscal year has remained at $3.66 per share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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