Medtronic rises despite flat EPS; Analog Devices sinks despite beating estimates

Posted May 20th 2008 6:40PM by Trey Thoelcke
Filed under: Earnings Reports

While medical device maker Medtronic Inc. (NYSE: MDT) reported flat fourth-quarter profit on Tuesday despite strong growth in sales and operating earnings, chip maker Analog Devices Inc. (NYSE: ADI) said its fiscal second-quarter profit increase on higher sales of analog products beat analyst estimates.

Minneapolis-based Medtronic's fourth-quarter profit of $812 million was the same as last year, when the company recorded a tax gain of about $129 million. Adjusted earnings-per-share rose to 72 cents, up from 70 cents per share a year ago, and in line with the estimates of analysts surveyed by Thomson Financial.

Revenue for the quarter rose 18% to $3.86 billion, ahead of analysts' expectations of about $3.72 billion.

For the full year just ended, the company earned $2.23 billion, or $1.95 per share, down from $2.8 billion, or $2.41 per share a year ago. Revenue rose to almost $13.52 billion, up from about $12.3 billion a year ago. Analysts were expecting earnings per share of $2.96 on revenue of $15.1 billion.

Medtronic said it expects to earn $2.94 to $3.02 per share for fiscal 2009, on revenue of $15 billion to $15.5 billion.

Shares rose $1.08, or 2.3%, to $48.96 in trading Tuesday, and rose an additional 19 cents after hours.

For the quarter ended May 3, Analog earned $133.1 million, or 45 cents per share, up 6.2% from $125.4 million, or 37 cents per share, for the same quarter in 2007. Revenue rose 8.7% from a year ago to $649.3 million. Analysts polled by Thomson Financial had expected a profit of 41 cents per share on $627.2 million in revenue.

Analog said second-quarter earnings from continuing operations rose to $129.9 million, or 44 cents per share, from $125.6 million, or 37 cents per share, in the year-ago period. And the company said it expects to post a profit from continuing operations of 43 cents to 45 cents per share on $650 million to $665 million in revenue for the quarter ending in July.

Analog's fiscal third-quarter profit guidance was mostly above analyst estimates of 43 cents per share earnings on $638.8 million in revenue.

Shares of Analog Devices fell 95 cents, or 2.7 percent, to $34.75 in the regular session, and dropped an additional 75 cents after hours.

Visit AOL Money & Finance for more earnings coverage.

Tags: ADI, Analog Devices, earnings, earnings reports, MDT, Medtronic