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What Investors Can Expect from Medtronic's 3Q18 Results

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Part 2
What Investors Can Expect from Medtronic's 3Q18 Results PART 2 OF 3

Will Medtronic See Lower Sales Again in 3Q18?

Analysts’ revenue estimates

On February 20, 2018, Medtronic (MDT) is set to announce its 3Q18 earnings results. In fiscal 3Q18, Medtronic is expected to register a YoY (year-over-year) sales decline of 1.1%, which amounts to a dollar value of $7.2 billion. In 2Q18, the company reported sales of $7.05 billion, representing a YoY sales decline of ~4%. However, the results came in ahead of Wall Street expectations. The chart below compares Medtronic’s actual reported revenues and Wall Street estimates over recent quarters. Medtronic’s peers Johnson & Johnson (JNJ), Abbott Laboratories (ABT), and Stryker (SYK) reported sales growth of approximately 11.5%, 42.3%, and 9.9%, respectively, in their most recent quarters.

Will Medtronic See Lower Sales Again in 3Q18?

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What might impact Medtronic’s sales performance?

Medtronic maintained its fiscal 2018 guidance in its 1Q18 earnings release on November 21, 2017, despite the decline in YoY sales in the quarter due to the negative impact of adverse weather and the divestiture of part of its PMR (Patient Monitoring and Recovery) business to Cardinal Health (CAH). The company is confident about delivering steady performance due to its strong market position, product portfolio, recent launches, and acquisitions. Strong TAVR (transcatheter aortic valve replacement) adoption and emerging market growth are some of the key drivers of the company’s growth.

Medtronic operates in four business segments: the Cardiac and Vascular Group (or CVG), Restorative Therapies Group (or RTG), Minimally Invasive Therapies Group (or MITG), and Diabetes Group. For the 2018 outlook by segment, see What’s the Outlook for Medtronic’s Segments in Fiscal 2018?

Next, let’s take a look at the latest analyst recommendations for Medtronic.

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