Medtronic to Report on November 23

Medtronic (MDT) has said that they’ll report earnings next Tuesday, November 23.

If their current forecast holds, I think the stock is a very good buy, but I won’t be certain until the earnings report comes out. Wall Street’s current forecast is for 82 cents per share.

Here’s a look at Medtronic’s quarterly sales and EPS for the last several years:

Quarter EPS Sales in Millions
Jul-01 $0.28 $1,456
Oct-01 $0.29 $1,571
Jan-02 $0.30 $1,592
Apr-02 $0.34 $1,792
Jul-02 $0.32 $1,714
Oct-02 $0.34 $1,891
Jan-03 $0.35 $1,913
Apr-03 $0.40 $2,148
Jul-03 $0.37 $2,064
Oct-03 $0.39 $2,164
Jan-04 $0.40 $2,194
Apr-04 $0.48 $2,665
Jul-04 $0.43 $2,346
Oct-04 $0.44 $2,400
Jan-05 $0.46 $2,531
Apr-05 $0.53 $2,778
Jul-05 $0.50 $2,690
Oct-05 $0.54 $2,765
Jan-06 $0.55 $2,770
Apr-06 $0.62 $3,067
Jul-06 $0.55 $2,897
Oct-06 $0.59 $3,075
Jan-07 $0.61 $3,048
Apr-07 $0.66 $3,280
Jul-07 $0.62 $3,127
Oct-07 $0.58 $3,124
Jan-08 $0.63 $3,405
Apr-08 $0.78 $3,860
Jul-08 $0.72 $3,706
Oct-08 $0.67 $3,570
Jan-09 $0.71 $3,494
Apr-09 $0.78 $3,830
Jul-09 $0.79 $3,933
Oct-09 $0.77 $3,838
Jan-10 $0.77 $3,851
Apr-10 $0.90 $4,196
Jul-10 $0.80 $3,773
Oct-10 $0.82 $3,900
Jan-11 $0.85 $3,970
Apr-11 $0.94 $4,297

The last three quarters are estimates.

Here’s a look at the growth of the trailing four-quarter sales and earnings. Sales follows the left scale and EPS follows the right. Notice how the estimates (in red) are based on an expansion in profit margins. That’s what has me concerned.

Posted by on November 15th, 2010 at 10:43 am


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