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Alberto Abaterusso
Alberto Abaterusso
Articles (1669) 

Medtronic Rises on 3rd-Quarter Results for Fiscal 2019

The Irish health care major topped consensus on earnings and revenues

February 19, 2019 | About:

Medtronic Plc (NYSE:MDT), 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.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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