Medtronic Earns 86 Cents Per Share

This morning, Medtronic (MDT) reported earnings of 86 cents per share for its fiscal third quarter. That matched exactly what I said I was expecting in the most recent issue of CWS Market Review. The consensus on Wall Street was for 83 cents per share. I’m not sure if that will be enough to off-set a sluggish market mood today.

Medtronic’s revenue rose 3% to nearly $4 billion. The company also said it would cut 1,500 to 2,000 jobs as part of its restructuring efforts. I’m not happy to see those folks lose their jobs but it’s a move MDT needs to make.

I decided to stick with Medtronic on this year’s Buy List even though the company had lowered its guidance twice during 2010. Normally, that would have me running from a stock but I still think Medtronic is a decent value.

I also expected MDT to narrow its full-year guidance which they did. Earlier, Medtronic had said it was expecting earnings-per-share to range between $3.38 to $3.44. Now the range is $3.38 to $3.40 per share. That implies fiscal Q4 earnings between 91 and 93 cents per share.

Here’s a look at Medtronic’s quarterly sales and EPS for the last several years:

Quarter EPS Sales in Millions
Jul-01 $0.28 $1,456
Oct-01 $0.29 $1,571
Jan-02 $0.30 $1,592
Apr-02 $0.34 $1,792
Jul-02 $0.32 $1,714
Oct-02 $0.34 $1,891
Jan-03 $0.35 $1,913
Apr-03 $0.40 $2,148
Jul-03 $0.37 $2,064
Oct-03 $0.39 $2,164
Jan-04 $0.40 $2,194
Apr-04 $0.48 $2,665
Jul-04 $0.43 $2,346
Oct-04 $0.44 $2,400
Jan-05 $0.46 $2,531
Apr-05 $0.53 $2,778
Jul-05 $0.50 $2,690
Oct-05 $0.54 $2,765
Jan-06 $0.55 $2,770
Apr-06 $0.62 $3,067
Jul-06 $0.55 $2,897
Oct-06 $0.59 $3,075
Jan-07 $0.61 $3,048
Apr-07 $0.66 $3,280
Jul-07 $0.62 $3,127
Oct-07 $0.58 $3,124
Jan-08 $0.63 $3,405
Apr-08 $0.78 $3,860
Jul-08 $0.72 $3,706
Oct-08 $0.67 $3,570
Jan-09 $0.71 $3,494
Apr-09 $0.78 $3,830
Jul-09 $0.79 $3,933
Oct-09 $0.77 $3,838
Jan-10 $0.77 $3,851
Apr-10 $0.90 $4,196
Jul-10 $0.80 $3,773
Oct-10 $0.82 $3,903
Jan-11 $0.86 $3,961
Apr-11 $0.91 to $0.93 est $4,300 est.

Here’s an eye-opening look at Medtronic’s stock along with its earnings-per-share:

Posted by on February 22nd, 2011 at 8:51 am


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