Medtronic narrows 2013 guidance

January 7, 2013 by Arezu Sarvestani

Medical device company Medtronic cuts off the lower end of its fiscal year 2013 earnings-per-share guidance in consideration of a federal R&D tax credit.

Medtronic logo

Medical device giant Medtronic(NYSE:MDT) narrowed its fiscal year 2013 guidance today, citing new clarity on the impact of the federal R&D tax credit.

The Minnesota device maker now expects earnings-per-share in the range of $3.66-$3.70 for fiscal year 2013, from previous guidance in the range of $3.62-$3.70, CEO Omar Ishrak told an audience at the J.P. Morgan Healthcare conference in San Francisco today.

Sign up to get our free newsletters delivered right to your inbox.

The new guidance cements the company's 2013 EPS growth prediction in the 6-7% range.

"This is purely mechanical," Ishrak said. "It's just removing the risk of the R&D tax credit, that's all this is."

Medtronic expects the credit to add about 3¢ per share in Q3 2013 and around another 1¢ in Q4 2013, he added.

In November the device maker announced its 2nd-quarter 2013 financial results, meeting expectations and raising its sales forecast for the rest of the year.

The Fridley, Minn.-based medical device company posted profits of $646 million, or 63¢ per share, on sales of $4.10 billion during the 3 months ended Oct. 26, representing a 25.8% profit slide on sales growth of 1.8%.

At the time Medtronic also boosted its sales outlook for fiscal 2013, saying it expected revenue growth of 3% to 4%, up from 2% to 4% previously.

Comments