Medtronic’s Q1 earnings top expectations despite top-line slip

Fiscal 1st-quarter earnings for Medtronic (NYSE:MDT) beat Wall Street’s consensus forecast today, despite a -1.5% sales decline.

The world’s largest pure-play medical device maker posted profits of $929 million, or 66¢ per share, on sales of $7.17 billion for the 3 months ended July 29 – a 13.3% increase for the bottom line.

Adjusted to exclude 1-time items, earnings per share were $1.07, a full nickel ahead of The Street, where analysts were looking for sales of $7.17 billion.

“Q1 was another strong quarter for Medtronic, where our diversified businesses and geographies delivered solid results,” chairman & CEO Omar Ishrak said in prepared remarks. “In addition to our solid top- and bottom-line performance, we also continue to generate significant free cash flow, and we continue to strategically deploy our capital against our priorities of reinvesting with discipline in M&A and R&D, returning substantial cash to our shareholders, and deleveraging our balance sheet.

“We feel very good about our momentum to start our fiscal year, and we are confident in our ability to sustain this performance over the coming quarters,” Ishrak added.

Medtronic stood pat on its guidance for fiscal 2017, saying it still expects to post adjusted EPS of $4.60 to $4.70 on constant-currency sales growth of 12% to 16%.

MDT shares ticked up 0.4% to $87 even today in pre-market trading.

The post Medtronic’s Q1 earnings top expectations despite top-line slip appeared first on MassDevice.

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