Medtronic Misses Earnings

This morning, Medtronic ($MDT) reported earnings of 90 cents per share for their fiscal Q4 which was two cents below the Street’s consensus (though some sources said the consensus was 93 cents per share). Quarterly revenue came in at $4.29 billion which matched consensus.

Worldwide sales of cardiac rhythm management products, including ICDs and pacemakers, fell 7 percent to $1.32 billion. Spine device sales fell 1 percent to $875 million.

Cardiovascular device sales, including stents to treat clogged arteries, rose 16 percent to $879 million. Neuromodulation device sales, which include pain treatments, rose 5 percent to $432 million, and diabetes device sales rose 11 percent to $368 million.

For fiscal 2012, Medtronic forecast earnings of $3.43 to $3.50 a share, below analysts’ expectations, on overall revenue growth in a range of 1 percent to 3 percent. It characterized its outlook as cautious, reflecting expected continued weakness in its key device markets.

For the year, Medtronic earned $3.37 per share on revenue of $15.993 billion. During the past several months, Medtronic has gradually lowered its 2011 earnings estimates. The 2011 EPS range went from $3.45 to $3.55, to $3.40 to $3.48, to $3.38 to $3.44, to $3.38 to $3.40 per share.

As I’ve said many times, I really like it when companies provide guidance and when they update that guidance throughout the year. Ultimately, Medtronic fell short of their guidance by one penny per share. That’s not what I wanted to see, but I’m still pleased with Medtronic’s development.

Medtronic’s fiscal year ends in April, so their FY 2012 just started. The company also provided its first guidance for 2012. Medtronic sees full-year earnings-per-share ranging between $3.43 and $3.50. The Street has been expecting $3.62 per share.

The stock is currently down about 1.5% this morning. Here’s a look at Medtronic’s quarterly results for the past 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 $3,903
Jan-11 $0.86 $3,961
Apr-11 $0.90 $4,295

Posted by on May 24th, 2011 at 11:21 am


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