Medtronic logs fiscal Q1 earnings beat, but sales miss the mark

Medtronic (NYSE:MDT) beat the consensus forecast on Wall Street with its fiscal 2018 first-quarter earnings, but missed the mark when it came to sales. The world’s largest medical device operation today posted profits of $1.02 billion, or 74¢ per share, on sales of $7.39 billion for the three months ended July 28, for a bottom-line gain of 9.4% on sales growth of 3.1% compared with fiscal Q1 2017. Adjusted to exclude one-time items, earnings per share were $1.12, 4¢ ahead of The Street, where analysts were looking for sales of $7.45 billion. MDT shares, which closed up slightly yesterday at $83.52 apiece, ticked up 0.1% to $83.60 per share in pre-market activity today. “The strength of our diversification and solid underlying performance of our businesses, combined with the stable growth of our end markets, enabled us to manage the impact of a global IT system disruption and temporary diabetes sensor supply constraint,” chairman & CEO Omar Ishrak said in prepared remarks. “While these temporary issues had affected first-quarter revenue growth, we continued to drive operating margin expansion. This resulted in double-digit constant-currency EPS growth, consistent with our long-term expectations.” Medtronic said it now expects to grow its adjusted EPS by 9% to 10% on constant-currency sales growth of 4% to 5% for fiscal 2018. “Looking ahead, we have now entered a period of clear acceleration in our innovation cycle and we expect to see ...
Source: Mass Device - Category: Medical Devices Authors: Tags: MassDevice Earnings Roundup Wall Street Beat Medtronic Source Type: news