By Sarah Collins | Market Realist
Medtronic’s revenue estimates
On May 31, 2016, Medtronic (MDT) will announce its fiscal 4Q16 earnings for the period ending April 30, 2016. Wall Street has estimated the company’s 4Q16 revenues to be about $7.5 billion, which would represent a rise of around 2.5% on a YoY (year-over-year) basis. The revenues in the last quarter were reported to be around $6.9 billion.
In 3Q16, Medtronic’s comparable constant currency sales growth came in at 6%. 3Q16 revenues were dragged down by a negative foreign exchange impact of $344 million. Medtronic expects 4Q16 sales to grow in the range of 5% to 5.5% on a comparable constant currency basis and have a negative foreign exchange impact of around $180 million to $220 million due to the strong US dollar.
The foreign exchange impact and the slow spine and neuromodulation sales are expected to affect Medtronic’s 4Q16 revenues as well. However, the company’s strong product portfolio, significant free cash flows, and robust business model will partially offset these factors and drive revenue growth.
