On Nov. 20, after the market-close, medical equipment maker Medtronic (NYSE:MDT) released fiscal second-quarter 2006 earnings for the period ended Oct. 27. Here are the quick and dirty details for the quarter.
- Sales grew 11.2% to $3.1 billion, led by the spinal and navigation, vascular, and neurological segments.
- Reported diluted earnings fell 11.9%, but management stated that earnings grew 13% after adjusting for stock option expensing and other one-time gains in last year's second quarter.
- Year-to-date cash flow generation was strong, and free cash flow grew 33.7%, excluding the purchases of intellectual property.
- Long-term debt jumped over five times from last year's quarter.
(Figures in millions, except per-share data)
Income Statement Highlights|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,970 |
$3,075 |
$2,765 |
11.2% |
|
Net Profit |
-- |
$681 |
$817 |
(16.6%) |
|
EPS |
$0.56 |
$0.59 |
$0.67 |
(11.9%) |
|
Diluted Shares |
-- |
1,159 |
1,223 |
(5.2%) |
Get back to basics with a look at the income statement.
Margin Checkup|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
74.15% |
74.86% |
(0.71) |
|
Operating Margin |
29.63% |
27.67% |
1.96 |
|
Net Margin |
22.15% |
29.55% |
(7.40) |
Margins are the earnings engine. See how they work.
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,605 |
$4,177 |
(13.7%) |
|
Accounts Rec. |
$2,590 |
$2,316 |
11.8% |
|
Inventory |
$1,318 |
$1,127 |
17% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$319 |
$341 |
(6.4%) |
|
Long-Term Debt |
$5,487 |
$1,001 |
448% |
Learn the ways of the balance sheet.
Cash Flow Highlights|
YTD |
YTD |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,307 |
$1,019 |
$288 |
|
Capital Expenditures |
$251 |
$229 |
$22 |
|
Free Cash Flow |
$1,056 |
$790 |
$266 |
*Capex doesn't include intellectual property purchases or acquisitions.
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Related Companies:
- Baxter (NYSE:BAX)
- Boston Scientific (NYSE:BSX)
- St. Jude Medical (NYSE:STJ)
- Johnson & Johnson (NYSE:JNJ)
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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.
