NEW YORK (TheStreet) -- Shares of Medtronic (MDT) - Get Report are sliding 1.59% to $80.39 in early-afternoon trading on Tuesday as its cautious outlook for 2017 overshadows a fourth-quarter earnings and revenue beat.
Before the market open, the medical device maker said it anticipates full-year 2017 adjusted earnings between $4.60 and $4.70 per share. Analysts surveyed by Thomson Reuters are looking for earnings of $4.70 per share.
The forecast reflects the impact of the strong dollar, which can weigh on profit margins on goods sold overseas. Shares are down this afternoon as investors worry about softer-than-expected operating margins, Reuters notes.
The downbeat guidance is overshadowing its better-than-expected 2016 fourth quarter earnings and revenue.
For the most recent period, Medtronic reported adjusted earnings of $1.27 per share, above analysts' estimates of $1.26 per share. Revenue rose 3.6% to $7.57 billion, compared to analysts' estimates for $7.49 billion.
Sales within the company's cardiac and vascular unit grew 5.4% to $2.74 billion, accounting for 36% of its total sales.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Medtronic's strengths such as its robust revenue growth, reasonable valuation levels, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: MDT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.