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

One of Medtronic’s answers to Obamacare’s tax increase has been to shift hiring abroad, focusing on China as a potential target for expansion. But even beyond Obamacare, Medtronic, Inc. (NYSE:MDT)’s international push is part of its overall business strategy, and its acquisition last year of China’s Kanghui Holdings, a specialist in orthopedics, will go a long way toward helping Medtronic meets its goal of getting 20% of sales from emerging markets by 2016.

In Medtronic’s quarterly report, be sure not to overlook the company’s smaller endovascular and neuromodulation divisions. In past quarters, those businesses have looked promising, and if the company’s focus on the heart proves to be less than ideal, then bolstering those divisions could hold the key to a revival of Medtronic’s prospects going forward.

The article Will Obamacare Crush Medtronic’s Earnings? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson and Medtronic.

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