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Medtronic Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 88 cents per share, a rise of 4.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 90 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 88 cents during the last month. Analysts are projecting profit to rise by 5.8% versus last year to $3.66.
Past Earnings Performance: Last quarter, the company met expectations by reporting net income of 85 cents per share last quarter. In the previous fourth quarter of the last fiscal year, the company beat estimates by one cent.
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Stock Price Performance: Between October 17, 2012 and November 14, 2012, the stock price dropped $2.52 (-5.8%), from $43.29 to $40.77. 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. It saw one of its worst periods between April 2, 2012 and April 10, 2012 when shares fell for six straight days, dropping 5.5% (-$2.17) over that span.
A Look Back: In the first quarter, profit rose 5.2% to $864 million (83 cents a share) from $821 million (77 cents a share) the year earlier, meeting analyst expectations. Revenue fell 1% to $4.01 billion from $4.05 billion.
Analyst Ratings: With 11 analysts rating the stock as a buy, none rating it as a sell and 11 rating it as a hold, there are indications of a bullish outlook. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 1.2% in the third quarter of the last fiscal year and 27.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 0% in the the fourth quarter of the last fiscal year after dropping in the first quarter.
Wall St. Revenue Expectations: Analysts are projecting a decline of 1.9% in revenue from the year-earlier quarter to $4.05 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 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.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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