Health and Healthcare
Q1 Revenue Lifts Medtronic Over Low Earnings Bar
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Medtronic PLC (NYSE: MDT) reported its fiscal first-quarter financial results before the markets opened on Thursday. The company said it had $1.02 in earnings per share (EPS) on $7.3 billion in revenue. That compared to consensus estimates from Thomson Reuters of $1.01 in EPS on revenue or $7.06 billion. In the same period of the previous year, the company posted EPS of $1.05 and $4.27 billion in revenue.
Foreign currency translation had a negative $529 million impact on revenue. Revenue increased 70% when compared to the $4.273 billion reported by Medtronic in the first quarter of fiscal year 2015.
Medtronic issued guidance for the 2016 fiscal year that said it expects revenue growth in the range of 4% to 6% and EPS in the range of $4.30 to $4.40. Consensus estimates are $4.37 in EPS on $28.78 billion in revenue.
Ultimately the company is confident that its three growth strategies — therapy innovation, globalization and economic value — will further strengthen the market-leading competitive position of its combined organization.
Omar Ishrak, chairman and CEO of Medtronic, commented on earnings:
Our first quarter results represent a strong start to fiscal year 2016, with all four of our groups contributing to revenue growth that was at the upper end of our goal when adjusted for the extra week. We are driving solid growth in the United States and seeing broad acceptance of our innovative therapies around the world. We continue to strengthen and geographically diversify our businesses and remain confident in both our outlook for the remainder of the year and our long-term competitive position in the changing healthcare environment.
After being up 2% in premarket trading Thursday, shares of Medtronic were up about 1% to $72.34 after the opening bell. The 52-week trading range is $55.54 to $79.50. The stock has a consensus analyst price target of $87.03.
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