Medtronic Earnings: MDT Stock Slips 4% on Q3 Sales Miss

Medtronic (NYSE:MDT) earnings for the company’s fiscal third quarter of 2020 have MDT stock slipping lower on Tuesday. That comes after reporting adjusted earnings per share (EPS) of $1.44, which was above Wall Street’s estimate of $1.38 per share. Revenue of $7.72 billion, on the other hand, comes in below analysts’ estimates of $7.81 billion.

Medtronic Earnings: MDT Stock Slips 4% on Q3 Sales Miss

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Now, here’s a closer look at the most recent Medtronic earnings report.

  • Adjusted EPS for the quarter is up 11.63% from $1.29 during the same time last year.
  • Revenue comes in 2.25% higher than the $7.55 billion from the fiscal third quarter of 2019.
  • Operating income of $1.64 billion is a 6.49% increase year-over-year from $1.54 billion.
  • The Medtronic earnings report also has it bringing in a net income of $1.92 billion.
  • That’s a 51.18% improvement over its net income of $1.27 billion from the same period of the year prior.

Omar Ishrak, chairman and CEO of Medtronic, says this about the MDT stock earnings report:

“Organic revenue growth was light this quarter, due largely to transient issues. However, we continue to feel very good about the fourth quarter, and in the third quarter, a softer top-line was more than offset by significant margin expansion, resulting in better-than-expected earnings per share and free cash flow.”

The Medtronic earnings report also includes an update to its fiscal 2020 guidance. This has it raising its adjusted EPS estimate to between $5.63 and $5.65, with the previous range being $5.57 to $5.63. Wall Street’s estimate is for adjusted EPS of $5.60 during fiscal 2020.

MDT stock is currently down more than 4% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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