Medtronic Earns $1.12 per Share

This morning, Medtronic ($MDT) reported fiscal Q4 earnings of $1.12 per share which matched expectations, but I was expecting a little more. Revenue rose 2.4% to $4.57 billion. Overall, this isn’t bad.

“In our fourth quarter, our overall organization once again delivered balanced growth, with strong performances in some areas more than offsetting challenges in other parts of our business,” said Omar Ishrak, Medtronic chairman and chief executive officer. “We remain focused on delivering consistent and dependable growth across all of our businesses through our three growth vectors: new therapies, emerging markets, and independent services and solutions.”

Some good news is that the company finally settled its dispute with Edwards Lifesciences ($EW) over their CoreValve heart valve. Medtronic has agreed to pay EW $750 million plus royalty payments over the next eight years. As part of the settlement, both companies have agreed to stop suing the pants off each other. It’s time to move on.

Now for guidance. For this fiscal year, Medtronic sees earnings ranging between $4 and $4.10 per share. The Street had been expecting $4.09 per share. They expect revenue growth of 3% to 5% on a constant currency basis. The stock is down a bit in pre-market trading, but this was a perfectly fine earnings report.

Next month, I expect another dividend increase. I think they’ll raise their quarterly dividend from 28 cents to about 30 cents per share.

Posted by on May 20th, 2014 at 9:38 am


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