Medtronic Plc (MDT, Financial), the world's largest medical device maker, posted results for the third trimester of fiscal 2019 on Tuesday before market open.
The Dublin, Ireland-based company released non-GAAP earnings per share of $1.29, beating expectations by 5 cents, and released GAAP earnings per share of 94 cents, topping consensus by 3 cents.
Non-GAAP earnings per share grew 10.3% from the prior-year quarter while GAAP earnings per share represented a positive reversal from the loss of $1.03 in the third quarter of fiscal 2018.
At $1.269 billion, net income switched to positive from a prior-year quarter loss of $1.389 billion, while non-GAAP net income increased 10% to $1.751 billion.
Third-quarter total revenues of Medtronic were $7.55 billion, up 2.4% year-over-year. The company topped consensus on quarterly revenues by $20 million.
Revenues were shared amid the following business segments. Year over year, sales from the Cardiac & Vascular Group segment declined 0.5% to $2.786 billion. Sales from the Minimally Invasive Therapies Group segment grew 4.1% to $2.124 billion. Sales from the Restorative Therapies Group segment went 4.2% up to $2.026 billion and sales from the Diabetes Group segment jumped 4.5% to $610 million.
For the first three quarters of fiscal 2019, Medtronic Plc recorded $4.92 billion in cash flow from operations, reflecting a nearly 35% increase from the corresponding period of fiscal 2018.
For full fiscal year 2019, the Irish health care major has guided for 5.25-5.5% organic growth in revenue, up from a previously expected 5-5.5% range. It has forecasted that non-GAAP earnings per share will range between $5.14 and $5.16, up from a prior range of $5.10 to $5.15.
Shares of Medtronic Plc were up 2.63% to $94.7 in pre-market trading on Tuesday. The share price of $92.27 at close Friday has climbed 1% so far this year, underperforming the S&P 500 Exchange Traded Fund by 10%. The stock has a market capitalization of roughly $123.92 billion.
The 52-week range is $76.41 to $100.15.
Wall Street has issued an overweight rating, meaning that the stock is foreseen to outperform either the industry or the overall market, with an average target price of $102.75 per share.
Disclosure: I have no positions in any security mentioned.
