Medtronic beats by $0.01, reports revs in-line; reaffirms FY17 guidance (78.88)
- Reports Q3 (Jan) earnings of $1.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.11; revenues rose 5.0% year/year to $7.28 bln vs the $7.22 bln Capital IQ Consensus. U.S. revenue of $4.106 billion represented 56 percent of company revenue and increased 4 percent. Non-U.S. developed market revenue of $2.193 billion represented 30 percent of company revenue and increased 6 percent, or 7 percent on a constant currency basis. Emerging market revenue of $984 million represented 14 percent of company revenue and increased 9 percent, or 11 percent on a constant currency basis; non-GAAP operating margin was 29.1 percent, representing a 130 basis point improvement.
- Co reaffirms guidance for FY17, sees EPS of $4.55-4.60, excluding non-recurring items, vs. $4.56 Capital IQ Consensus. The co continues to expect fiscal year 2017 revenue growth to be within the mid-single digit range on a constant currency, constant weeks basis, which is consistent with the company's long-term, mid-single digit constant currency revenue growth expectation. The company expects revenue growth for the fourth quarter of fiscal year 2017 to be in the lower half of the mid-single digit range on a constant currency basis. While the impact from foreign currency exchange is fluid, if current exchange rates remain similar for the remainder of the fiscal year, the company's full year revenue and fourth fiscal quarter would both be negatively affected by ~$20 million to $40 million. The company continues to expect fiscal year 2017 diluted non-GAAP EPS growth to be in the double digits on a constant currency, constant week basis, which is consistent with the company's long-term, double digit constant currency EPS growth expectation
- "In Q3, we achieved solid results across all of our business groups and geographies," said Omar Ishrak, Medtronic chairman and chief executive officer. "At the same time, we produced meaningful operating profit growth based largely on our synergy programs from the Covidien integration, as well as our focus on operating excellence initiatives."