The 10-second takeaway
For the quarter ended Jan. 25 (Q3), Medtronic met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Gross margins contracted, operating margins grew, net margins grew.
Medtronic logged revenue of $4.03 billion. The 21 analysts polled by S&P Capital IQ predicted a top line of $4.03 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.93. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.91 per share. Non-GAAP EPS of $0.93 for Q3 were 11% higher than the prior-year quarter's $0.84 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.) GAAP EPS of $0.97 for Q3 were 10% higher than the prior-year quarter's $0.88 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.2%, 100 basis points worse than the prior-year quarter. Operating margin was 28.5%, 100 basis points better than the prior-year quarter. Net margin was 24.5%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.39 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $16.53 billion. The average EPS estimate is $3.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,704 members out of 1,795 rating the stock outperform, and 91 members rating it underperform. Among 530 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 517 give Medtronic a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Medtronic is outperform, with an average price target of $46.71.
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