On Feb. 20, medical technology company Medtronic (NYSE:MDT) released third-quarter earnings for the period ended Jan. 26.
- Sales increased by 10%, thanks to double-digit revenue growth in five of seven major business segments and the positive impact of foreign currency translation.
- Because of product mix shift and an increase in SG&A expenses (which was offset by manufacturing efficiencies and cost-controlling initiatives), operating margin declined by 240 bps.
- The company repurchased approximately 10 million shares of common stock worth $438 million in the nine months ended Jan. 26.
- For fiscal 2007, Medtronic expects revenue in the range of $12.2 billion to $12.4 billion and EPS of $2.34 to $2.38.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$3,048 |
$2,770 |
10.0% |
|
Net Profit |
$710 |
$670 |
6.0% |
|
EPS |
$0.61 |
$0.55 |
10.9% |
|
Diluted Shares |
1,163.7 |
1,222.8 |
(4.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
74.6% |
74.8% |
(0.2) |
|
Operating Margin |
29.5% |
31.8% |
(2.4) |
|
Net Margin |
23.3% |
24.2% |
(0.9) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,321.0 |
$4,926.8 |
(32.6%) |
|
Accounts Rec. |
$2,626.0 |
$2,364.6 |
11.1% |
|
Inventory |
$1,319.0 |
$1,177.2 |
12.0% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$345.0 |
$310.9 |
11.0% |
|
Long-Term Debt |
$5,577.0 |
$1,002.5 |
456.3% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$2,054 |
$1,512 |
35.8% |
|
Capital Expenditures |
$479 |
$1,136 |
(57.8%) |
|
Free Cash Flow |
$1,575 |
$376 |
318.9% |
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Related Companies:
- Biomet (NASDAQ:BMET)
- Boston Scientific (NYSE:BSX)
- St. Jude Medical (NYSE:STJ)
- Stryker (NYSE:SYK)
- ZOLL Medical (NASDAQ:ZOLL)
Related Foolishness:
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