Medtronic Gives 2011 Outlook

Once again, the stock market looks to rise this morning. The Federal Reserve is meeting in Washington and will almost certainly leave interest rates unchanged. Traders, however, will dissect the Fed’s policy statement for any hint of a change in direction. I’ve said that I believe the Fed will raise rates before most people expect.
As for now, the dominant fact is that unemployment is close to 10% and inflation is very tame. In Britain, the results of their most recent policy meeting showed that one member did vote to increase rates (shocker), but everyone else wanted to continue with low rates.
Medtronic (MDT) said that it expects earnings of 79 cent to 81 cents per share for its fiscal first quarter which ends next month. That’s below Wall Street’s estimate of 84 cents per share so the stock may come down today, but the news isn’t that bad. For the full year, Medtronic sees earnings ranging between $3.45 and $3.55 per share while the Street sees earnings coming in at $3.51 a share. The stock is now below $38 a share so Medtronic is going for a decent valuation.

Posted by on June 23rd, 2010 at 9:32 am


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