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Medtronic, Inc. (NYSE:MDT) is scheduled to report its Q1 2013 results on August 21, 2012, before market opens. The street expects EPS and revenue of $0.85 and $4.01B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MDT and the news from its closest competitors.

Medtronic, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.99 EPS, just above analyst estimates of $0.98.

Medtronic, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.85 based on 22 analysts' estimates, up from $0.79 a year ago. Revenue estimates are $4.01B, just below $4.05B from a year ago. The median target price by analysts for the stock is $43.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 8, 2012, Argus downgraded the company from Hold to Sell.
  • On March 1, 2012, Northland Securities initiated Market Perform rating for the company.
  • On February 22, 2012, Brean Murray reiterated Buy rating for the company.
  • On February 21, 2012, Deutsche Bank downgraded the company from Buy to Hold.

Latest News

  • On May 22, 2012, Medtronic Inc announced that for fiscal 2013, it expects revenue growth in the range of 2% to 4% on a constant currency basis. The company expects fiscal 2013 diluted earnings per share (NYSEARCA:EPS) in the range of $3.62 to $3.70, which implies EPS growth of 5% to 7%. The Company reported revenue of $16.184 billion in fiscal 2012.
  • On May 16, 2012, Reuters reported that the Department of Justice (DOJ) and the U.S. Attorney's Office have closed their investigation related to omission of safety issues of Medtronic Inc's controversial orthopedic product Infuse and its off-lable use. Infuse came under scrutiny after the influential Spine Journal noted that surgeons, who were paid tens of millions of dollars by Medtronic, failed to report serious complications from bioengineered bone-growth protein, including cancer, sterility in men and bone dissolution.
  • On April 10, 2012, Medtronic Inc announced that the U.S. Food and Drug Administration (FDA) approved an expanded indication for its cardiac resynchronization therapy with implantable cardioverter defibrillator (CRT-D) devices.
  • On March 25, 2012, Medtronic Inc announced that the Symplicity renal denervation system provides safe, significant and sustained blood pressure reduction up to three years in patients with treatment-resistant hypertension, according to data from two clinical trials presented at the 2012 American College of Cardiology (NYSE:ACC) meeting.
  • On March 24, 2012, Medtronic Inc announced results from its prospective, single-arm clinical trial evaluating the Medtronic CoreValve System in patients with severe aortic stenosis who are at high-risk for surgical aortic valve replacement (SAVR).
  • On March 14, 2012, Medtronic Inc announced that it has a registered offering of $675 million of its 3.125% Senior Notes due 2022 and $400 million of its 4.50% Senior Notes due 2042.
  • On February 21, 2012, Medtronic, Inc. announced that for fiscal 2012, it reiterated its revenue outlook and tightened diluted earnings per share guidance range to $3.44 to $3.47, which includes approximately $0.04 to $0.06 of dilution from the Ardian acquisition.
  • On February 17, 2012, Medtronic, Inc. announced U.S. Food and Drug Administration (FDA) approval of the Resolute Integrity Drug-Eluting Stent (NYSEARCA:DES) for the treatment of coronary artery disease (NYSEARCA:CAD).
  • On February 16, 2012, Medtronic Inc announced that the Board of Directors has approved a cash dividend of $0.2425 per share of the Company's common stock. The dividend is payable on April 27, 2012, to shareholders of record at the close of business on April 6, 2012.

Competitors

Boston Scientific Corporation (NYSE:BSX), Johnson & Johnson (NYSE:JNJ), St. Jude Medical (NYSE:STJ), and Stryker (NYSE:SYK) are considered major competitors for Medtronic and the table below provides the key metrics for these companies and the industry.

Medtronic, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

MDT Chart

MDT data by YCharts

Competitors' Latest Development

  • On August 1, 2012, St. Jude Medical Inc announced that Board of Directors declared a third quarter dividend of $0.23 per common share. This dividend amount is equal to the dividend paid during the first and second quarter of 2012.
  • On July 26, 2012, Boston Scientific Corp. announced that for the third quarter of 2012, it expects sales in a range of $1.725-$1.825 billion, earnings on a GAAP basis in a range of $0.06-$0.09 per share and Adjusted earnings, excluding acquisition- and restructuring-related charges and amortization expense are estimated in a range of $0.14-$0.17 per share .
  • On July 24, 2012, Reuters reported that Pfizer Inc experimental Alzheimer's disease treatment failed to prove effective in one of four high-stakes late-stage trials in patients with mild to moderate forms of the memory-robbing disease.
  • On July 19, 2012, Stryker Corporation reaffirmed fiscal 2012 guidance and expects sales growth at 2% to 5%, excluding the impact from currency and acquisitions, and to deliver not less than double digit adjusted per share earnings growth.
  • On July 18, 2012, Boston Scientific Corp. announced that it has presented results of two studies evaluating the Infinion 16 Percutaneous Lead and only 16-contact percutaneous lead for spinal cord stimulation (NYSE:SCS) therapy, and the Clik Anchor, an locking system designed to secure and reduce unwanted migration of SCS leads.
  • On July 18, 2012, St. Jude Medical Inc announced that it expects its consolidated adjusted net earnings for the third quarter of 2012 to be in the range of $0.80 to $0.82 per diluted share and for fiscal 2012 consolidated adjusted net earnings to now be in the range of $3.40 to $3.45. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $0.83 for third quarter of 2012 and EPS of $3.46 for fiscal 2012.
  • On July 17, 2012, Johnson & Johnson adjusted earnings guidance for fiscal 2012 to $5.00-$5.07 per share. The Company's guidance excludes the impact of special items and reflects the negative impact of recent currency movements, partially offset by the positive contribution from the Synthes acquisition.
  • On July 16, 2012, Johnson & Johnson announced that its Board of Directors has declared a cash dividend for the third quarter of 2012 of $0.61 per share on the Company's common stock.
  • On July 16, 2012, St. Jude Medical Inc announced initial findings from the Riata Lead Evaluation Study. The study's phase-one results found that externalized conductors occurred in 9.3% of the smaller-diameter Riata ST 7F leads in the study, and in 24% of the larger-diameter Riata 8F leads.
  • On July 9, 2012, Reuters reported that Bayer AG and Johnson & Johnson's anti-blood-clotting pill Xarelto won priority review status from the U.S. Food and Drug Administration for the treatment of deep vein thrombosis and pulmonary embolism.
  • On June 26, 2012, Medifocus Inc. announced an agreement with Boston Scientific Corporation for the purchase of all of the assets of its Prolieve business, which sells devices for the treatment of Benign Prostatic Hyperplasia (BPH).
  • On June 22, 2012, Reuters reported that Johnson & Johnson said on June 21, 2012, that U.S. regulators have declined to approve a new use for its Xarelto blood clot preventer to reduce the risk of heart attacks and strokes in patients with acute coronary syndrome.
  • On June 21, 2012, Reuters reported that Johnson & Johnson is close to reaching a settlement with the U.S. Justice Department over allegations it promoted anti psychotic drug Risperdal for unapproved uses that could cost the healthcare conglomerate at least $1.5 billion.
  • On June 18, 2012, St. Jude Medical Inc announced that it has received U.S. Food and Drug Administration (FDA) clearance and will immediately launch the AMPLATZER Vascular Plug 4 (AVP 4) for use in transcatheter embolization procedures (minimally invasive procedures that involve the selective blocking of blood vessels) within the peripheral vasculature.
  • On June 14, 2012, Johnson & Johnson announced the completion of the acquisition of Synthes, Inc. for a total purchase price of $19.7 billion in cash and stock. Synthes will be integrated with the DePuy franchise to establish the DePuy Synthes Companies of Johnson & Johnson.
  • On June 13, 2012, Faruqi & Faruqi, LLP announced that it is investigating potential wrongdoing at St. Jude Medical, Inc. The investigation focuses on possible breaches of fiduciary duties by the board of directors and/or officers of the Company concerning their failure to properly disclose and take corrective action in connection with shortcomings of St. Jude's Riata leads.
  • On June 13, 2012, Reuters reported that Johnson & Johnson expects to complete its $19.7 billion purchase of Swiss medical device maker Synthes Inc. on Thursday and that the deal will slightly boost company profit this year, rather than being a moderate drag on earnings as previously expected.
  • On June 12, 2012, Reuters reported that Johnson & Johnson has won U.S. antitrust approval to buy Swiss medical device company Synthes Inc if it sells some assets, the Federal Trade Commission said on Monday.
  • On June 8, 2012, Boston Scientific Corp. announced that it has closed its acquisition of Cameron Health, Inc. of San Clemente, California and, as a result, added to its product portfolio subcutaneous implantable cardioverter defibrillator, called the S-ICD System.
  • On June 5, 2012, Law Office of Brodsky & Smith, LLC announced that it is investigating potential claims against DePuy Orthopedics and its corporate parent Johnson & Johnson on behalf of individuals that received either an DePuy ASR XL Acetabular System or an DePuy ASR Hip Resurfacing System.
  • On May 24, 2012, Reuters reported that U.S. advisers recommended against expanding the use of Johnson & Johnson's blood thinner Xarelto as a way to reduce the risk of new heart attacks and strokes in people with heart problems.
  • On May 18, 2012, Boston Scientific Corp. announced U.S. Food and Drug Administration approval and market launch of the Epic Vascular Self-Expanding Stent System. The Epic Stent is designed to open blocked arteries in patients with iliac artery stenosis, a form of peripheral vascular disease associated with severe leg pain caused by insufficient blood flow.
  • On May 17, 2012, Reuters reported that Johnson & Johnson advanced prostate cancer drug, Zytiga, to hormone therapy before surgery has been shown for the first time to eradicate tumors in some men with high-risk forms of the disease.
  • On May 16, 2012, St Jude Medical, Inc. announced that preliminary data demonstrated the Company's EnligHTN renal denervation system was safe and effective for the treatment of resistant hypertension.
  • On May 15, 2012, St Jude Medical, Inc. announced CE Mark Approval and launch of its EnligHTN renal denervation system during EuroPCR. Renal denervation is a specialized ablation procedure that has been clinically proven to reduce blood pressure in patients with hypertension, or high blood pressure, that is resistant to medical therapy.
  • On May 15, 2012, St Jude Medical, Inc. announced data from the FAME II trial demonstrated difference in the need for urgent revascularization when Fractional Flow Reserve (NYSEARCA:FFR)-guided assessment was used to direct treatment in patients with stable coronary artery disease.

Technical Overview


The stock has a market capitalization of $41.27B and is currently trading at $40.26 with a 52 week range of $30.94 - $40.78. The stock's year-to-date performance has been 7.27%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Medtronic Reports On August 21