Medtronic Inc. (NYSE:MDT) stock was downgraded to "hold" from "buy" by digital financial media company TheStreet, brain-child of CNBC’s Mad Money host Jim Cramer.
"Despite its growing revenue, the company underperformed as compared with the industry," according to the report, which cited revenue growth and expanding profit margins and strengths and deteriorating net income and disappointing stock performance as weaknesses.
"This growth in revenue does not appear to have trickled down to the company’s bottom line, displayed by a decline in earnings per share," according to TheStreet analysts.
The report breaks the downgrade into four sections: general underperformance of the stock, a decline in earnings per share, decreasing operating cash flow and a drop in net income.
But there are some positive notes. "This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year," analysts wrote.
It’s the second time in as many months that the company has gotten a bump down the later from financial analysts.
Late last month analysts at Standard & Poor’s changed their outlook for Medtronic Inc. (NYSE:MDT) from stable to negative due to continuing softness in the cardiac rhythm management market and pressures in the company’s spine business resulting from the Infuse controversy.
The Minneapolis, Minn.-based medical device giant is set to release its first quarter 2012 earnings report tomorrow morning.