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Medtronic Second Quarter Earnings Preview
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MDT
Medtronic (NYSE:MDT) is scheduled to announce its second quarter earnings on Tuesday, November 20, 2012.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results
What to Expect: Medtronic is expected to report 88 cents per share, up 4.8% from a year ago when the company reported earnings of 84 cents per share.
The consensus estimate, while unchanged in the past month, is down from 90 cents three months ago. For the fiscal year, analysts are expecting earnings of $3.66 per share.
Revenue for the quarter is expected to be $4.05 billion, short of last year's reported figure of $4.13 billion by 2%. For the fiscal year, expected revenue is $16.45 billion.
Company Performance: The average revenue increase year-over-year over the past four quarters is 1%. The most significant increase took place in the second quarter of the last fiscal year, when it rose 5.9% from the year-earlier quarter.
MDT's P/E ratio is 12.5. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
The stock price has fallen slightly over the past quarter, from $40.84 on August 17, 2012 to its current price, $40.77. The stock saw one of its worst stretches when its price fell $2.12 per share between October 5, 2012 and October 10, 2012.
The Competition: Medtronic provides products and therapies for medical professionals. Analysts generally consider Medtronic a hold, with 11 of 22 analysts rating it as such. In the last three months, they have become more optimistic, with the average rating moving up from hold to moderate buy.
The company's closest competitor in the medical equipment and supplies industry is Stryker (SYK). Analysts are less optimistic about Medtronic than about Stryker. Thirteen out of 25 analysts rate the latter a buy compared to 11 of 22 for the former.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results
What to Expect: Medtronic is expected to report 88 cents per share, up 4.8% from a year ago when the company reported earnings of 84 cents per share.
The consensus estimate, while unchanged in the past month, is down from 90 cents three months ago. For the fiscal year, analysts are expecting earnings of $3.66 per share.
Revenue for the quarter is expected to be $4.05 billion, short of last year's reported figure of $4.13 billion by 2%. For the fiscal year, expected revenue is $16.45 billion.
Company Performance: The average revenue increase year-over-year over the past four quarters is 1%. The most significant increase took place in the second quarter of the last fiscal year, when it rose 5.9% from the year-earlier quarter.
The stock price has fallen slightly over the past quarter, from $40.84 on August 17, 2012 to its current price, $40.77. The stock saw one of its worst stretches when its price fell $2.12 per share between October 5, 2012 and October 10, 2012.
The Competition: Medtronic provides products and therapies for medical professionals. Analysts generally consider Medtronic a hold, with 11 of 22 analysts rating it as such. In the last three months, they have become more optimistic, with the average rating moving up from hold to moderate buy.
The company's closest competitor in the medical equipment and supplies industry is Stryker (SYK). Analysts are less optimistic about Medtronic than about Stryker. Thirteen out of 25 analysts rate the latter a buy compared to 11 of 22 for the former.
by
Investopedia Staff
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