Will This Crush Medtronic, Inc. (MDT)’s Earnings?

Page 1 of 2

On Tuesday, Medtronic, Inc. (NYSE:MDT) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

One of the hardest-hit industries from new taxes under Obamacare has been the medical-device business, with a new 2.3% excise tax hitting Medtronic, Inc. (NYSE:MDT) and its device-making peers. Yet the company has taken steps to minimize the impact from Obamacare on its results. Let’s take an early look at what’s been happening with Medtronic, Inc. (NYSE:MDT) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Medtronic

Analyst EPS Estimate $1.03
Change From Year-Ago EPS 4%
Revenue Estimate $4.39 billion
Change From Year-Ago Revenue 2.1%
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

Can Medtronic keep its earnings healthy this quarter?
In recent months, analysts have very modestly marked down their views on Medtronic, Inc. (NYSE:MDT)’s earnings, cutting the April quarter’s estimate by a penny per share and the full-year fiscal 2014 projection by $0.02 per share. The stock, though, has advanced a bit, rising 6% since mid-February.

Medtronic, Inc. (NYSE:MDT)

As the leader in spinal and cardiovascular implants, Medtronic is one of the purest plays on medical devices among big companies. Johnson & Johnson (NYSE:JNJ) certainly has a substantial medical-device business, but it’s part of a much bigger health-care conglomerate that spans over-the-counter consumer products, as well as pharmaceuticals. Abbott Laboratories (NYSE:ABT), meanwhile, also has other major businesses, including its generic drug division and its nutritional products. Not being pure plays leaves Johnson & Johnson (NYSE:JNJ) and Abbott Laboratories (NYSE:ABT) less exposed to the industry’s particular challenges, but it also waters down the growth prospects from medical devices.

Yet Medtronic, Inc. (NYSE:MDT) has suffered from overall industry weakness in the cardiovascular market. Rivals St. Jude Medical, Inc. (NYSE:STJ) and Boston Scientific Corporation (NYSE:BSX) both joined Medtronic in posting substantial declines in their cardiac-rhythm management businesses, with St. Jude seeing a double-digit percentage contraction in pacemaker sales in its most recent quarter. Even as Abbott Laboratories (NYSE:ABT) and Johnson & Johnson (NYSE:JNJ) have been able to overcome weakness in their medical-device divisions because of their business diversity, Medtronic has to make do with its area of expertise.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!