What to Expect When Medtronic (MDT) Reports Earnings Tuesday Morning

NEW YORK (TheStreet) -- Shares of Medtronic PLC  (MDT) were up 0.24% to $76.50 in late morning trading Monday, one day ahead of the medical supplies company's fourth quarter earnings results, expected to be released before the market opens Tuesday.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio said on CNBC's Mad Money show Friday that he expects a surprise to the upside for Medtronic.

Analysts are expecting Medtronic to earn $1.11 per share on revenue of $7.16 billion for the quarter, according to Thomson Reuters data.

In the same period of last year, the company earned $1.15 per share on revenue of $4.57 billion.

Ireland-based Medtronic is a medical technology, services and solutions company that offers its products to hospitals, physicians, clinicians and patients in more than 160 countries.

The company's portfolio includes surgical, respiratory and monitoring, and vascular therapies solutions along with a line of patient care products to alleviate pain, restore health and extend life for people.

Separately, TheStreet Ratings team rates MEDTRONIC PLC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate MEDTRONIC PLC (MDT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, solid stock price performance, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MDT's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 30.66% and other important driving factors, this stock has surged by 25.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MDT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has slightly increased to $1,767.00 million or 9.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.82%.
  • MEDTRONIC PLC has improved earnings per share by 30.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MEDTRONIC PLC reported lower earnings of $3.01 versus $3.38 in the prior year. This year, the market expects an improvement in earnings ($4.39 versus $3.01).
  • You can view the full analysis from the report here: MDT Ratings Report

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