Medtronic’s Earnings Call

From Seeking Alpha:

Let me conclude by providing our initial fiscal year 2013 revenue outlook and earnings per share guidance. While we believe our markets have improved modestly, we estimate market growth remains in the low single digits. Based on this, as well as the expected growth from recent product launches, we believe that constant currency revenue growth of 2% to 4% is reasonable for FY ’13 and would reflect improvement from our organic growth in FY ’12. While we cannot predict the impact of currency movements, to give you a sense of the FX impact and the exchange rates were to remain similar to yesterday for the remainder of the fiscal year, then our FY ’13 revenue will be negatively affected by approximately $330 million to $337 million, including a negative $100 million to $120 million impact in Q1.

Turning to guidance on the bottom line. Based on expected constant currency revenue growth of 2% to 4%, we believe it is reasonable to model earnings per share in the range of $3.62 to $3.70, which implies FY ’13 earnings per share growth of 5% to 7%. While we do not provide quarterly guidance, we would point out that the current consensus reflects Q1 earnings per share growth of 10%, which is outside our issued guidance, and therefore we would not be surprised to see some modest shifts — modest model shift a couple of pennies from Q1 to Q4. As in the past, my comments and guidance do not include any unusual charges or gains that might occur during the fiscal year, nor do they include the impact of the noncash charge for convertible debt interest expense.

Posted by on May 22nd, 2012 at 3:48 pm


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