Medtronic’s Earnings

Three weeks ago, Medtronic (MDT) spooked Wall Street by saying that earnings will come in lower than expected. The company gave a range of 53 cents to 55 cents a share. The Street had been expecting 57 cents. After the bell, MDT reported earnings of 55 cents a share so it wasn’t as bad as it could have been.
Last October, the company raised guidance for 2006, 2007 and 2008. I was pretty impressed by that. Medtronic is no slouch. The company has raised its dividend for 28 straight years. Now the company is backing off its 2007 and 2008 calls. Medtronic sees 2007’s earnings coming in at $2.30 to $2.38, and $2.65 to $2.75 for 2008.
Based on those numbers, that makes the stock look pretty expensive.

Posted by on August 23rd, 2006 at 11:23 am


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