Earnings Preview: Medtronic

Medtronic (MDT) is expected to report Q3 earnings with a conference call scheduled for Tuesday, February 19 at 8:00 a.m. ET.

Guidance

Analysts are looking for a profit of 62c on revenue of $3.34B. The consensus range is 58c to 64c for EPS, and revenue of $3.32B to $3.45B, according to First Call. It has recently been reported that trends for stent usage have been improving over the fourth quarter.

A recovery in the stent market would be positive for Medtronic which has a large stake in this market. The FDA recently approved Medtronic's latest entry into the market, Endeavor, a new generation drug-coated stent. A weak dollar is likely to help Medtronic's top-line as they have a large amount of overseas sales. A possible negative for the stock is the impact of problems with Fidelis, a defibrillator wire that may have caused deaths.

Analyst Views

Cowen initiated the shares with a Neutral. They have concerns with management's long term growth view. Leerink Swann rates the stock an Outperform and says that current levels provide an attractive entry point.