OK, so beating earnings estimates by a penny or two -- depending on what you subtract to get adjusted earnings -- isn't anything to get overly excited about, but it doesn't deserve a nearly 3% drop either.
Medtronic finished its fiscal year strongly with a 10% increase in revenue thanks in part to currency changes; revenue was up 6% if you ignore them. And it reported more than $4 billion in revenue in one quarter for the first time.
Sales of the company's implantable cardioverter defibrillators (ICDs) benefited from a slip-up by competitor Boston Scientific
Now that Boston Scientific has relaunched its products, we'll have to see how much of the gained market share Medtronic and competitor St. Jude Medical
Looking forward, Medtronic is guiding for a 5% to 8% increase in revenue at constant currency. Being a pure medical device maker, investors get middle-of-the-road growth; not as quick as Abbott Labs
More importantly, Medtronic thinks it can grow earnings even quicker. Excluding charges from acquiring ATS Medical, the company expects adjusted earnings per share to come in between $3.50 and $3.60 next year, more than 10% higher than last fiscal year's adjusted earnings at the midpoint.
If Medtronic can hit that kind of growth, investors will surely notice. Eventually.