WASHINGTON: On August 25, 2016, Medtronic (MDT) will announce its fiscal 1Q17 earnings for the period ending July 31, 2016. Wall Street estimated the company’s 1Q17 revenues to be about $7.2 billion. This would represent a fall of around 1.3% on a YoY (year-over-year) basis. The revenues in 4Q16 were reported to be around $7.6 billion.
In 4Q16, Medtronic’s comparable constant currency sales growth came in at around 6%. Its 4Q16 revenues were dragged down by a negative foreign exchange impact of $179 million. Medtronic expects 1Q17 sales to grow in the lower half of the 5%–6% range on a comparable constant currency basis and have a negative foreign exchange impact of around $25 million–$75 million.
In the above graph, you can see a comparison of the actual reported revenues and analysts’ estimates in the previous quarters. In 4Q16, Medtronic’s actual revenues exceeded analysts’ expectations largely due to the strong performance in the company’s diabetes, Minimally Invasive Therapies Group and Cardiac, and Vascular Group segments as well as strong growth across all of its three growth vectors—emerging markets, new therapies, and services and solutions. Read Health Check: What Could Be in the Cards for Medtronic? for more about Medtronic’s growth strategies and fundamentals.
