We expect leading medical devices company -
) to beat expectations when it reports third-quarter 2013 results
on Feb 19.
Why a Likely Positive Surprise?
Our proven model shows that Medtronic is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is at +2.20%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks #2 Rank (Buy):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings. The sell rated
stocks (#4 and #5) should never be considered going into an
The combination of Medtronic's Zacks Rank # 2 (Buy) and ESP
of +2.20% makes us very confident in looking for a positive
earnings beat on Feb 19.
What is Driving the Better Than Expected Earnings?
Medtronic is enjoying market share gain on the back of the
Resolute Integrity DES for the treatment of coronary artery
disease. Other recently launched products are also contributing
to overall growth. The company also reiterated its aim of
returning 50% of free cash flow to shareholders and is targeting
suitable acquisitions to augment growth. Meanwhile, Medtronic has
increased its focus on the emerging markets and is targeting
higher revenues from this region.
Other Stocks to Consider
Here are some other companies that warrant a look as these
have the right ingredients to report possible earnings beat this
DENTSPLY International Inc.
), Earnings ESP of +1.82% and Zacks Rank #3 (Hold)
), Earnings ESP of +11.77% and Zacks Rank #3 (Hold)
), Earnings ESP of +2.11% and Zacks Rank #3 (Hold).
About Earnings ESP
Would you like to own more stocks likely to beat their next
earnings report? And avoid stocks likely to disappoint?
If yes, then it's time you learn about the Earnings ESP score
available on Zacks.com.
DEXCOM INC (DXCM): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
DENTSPLY INTL (XRAY): Free Stock Analysis
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