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Medtronic (MDT) Tops Q2 Earnings, Misses Revenue Estimates

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Are you a medical practitioner? Yes, then you must be aware of Minnesota-based one of the world’s leading medical technology giant – Medtronic plc (MDT - Free Report) which has a global reach that extends to more than 140 countries. Last year, more than 10 million people benefited from Medtronic’s medical therapies, which treat cardiac and vascular diseases, diabetes, and neurological and musculoskeletal conditions.

Currently, Medtronic has a Zacks Rank #3 (Hold) but that could change following its mixed second-quarter fiscal 2017 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here). We have highlighted some of the key details from the just-released announcement below:

Earnings: The current Zacks Consensus Estimate stands at $1.11 per share. Medtronic’s adjusted earnings per share of $1.12 exceeded this estimate by 0.9%.

MEDTRONIC Price and EPS Surprise

MEDTRONIC Price and EPS Surprise | MEDTRONIC Quote

Revenues: Medtronic posted revenues of $7.345 billion, missing the Zacks Consensus Estimate for revenues of $7.463 billion.

Key Stats: Revenues from Medtronic’s Cardiac and Vascular Group rose 3% at Constant exchange Rate (CER) to $2.584 billion, while revenues from Minimally Invasive Therapies Group increased 4% at CER to $2.473 billion. On the other hand, revenues from Restorative Therapies Group rose 3% to $1.826 billion, while revenues from Diabetes Group grew 3% to $462 million.

Major Factors: Medtronic reported second quarter fiscal 2017 on a mixed note with its bottom-line exceeding the Zacks Consensus Estimate, while the top-line missing the same. However the company’s year over year top line performance was impressive across all business groups. The company has also updated its FY17 guidance citing revenue, free cash flow and EPS outlook.

Stock Price: Following the earnings release, share prices dropped almost 5.7% in the pre-market trading session.

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