Thursday, August 26, 2010

Medtronic Looks A Little Woozy

Diversification is a great thing ... but what does a company do when none of its top divisions do very well? That is the dilemma for Medtronic (NYSE:MDT) and its investors, as this one-time darling of med-tech struggles through a low point in its growth trajectory

The Quarter That Was
Revenue fell about 4% this quarter, missing the consensus estimate by almost $200 million. Most concerning was the fact that the company's two largest businesses, Cardiac Rhythm Disease Management (pacemakers and ICDs) and Spinal, were two of the worst performers. CRDM saw sales fall about 8%, while spine revenue dropped 9%. Worse still, these were poor performances relative to the wider markets, suggesting that companies like St. Jude (NYSE:STJ) and Stryker (NYSE:SYK) are taking away market share. 



To read the complete article, please go to:
http://stocks.investopedia.com/stock-analysis/2010/Medtronic-Looks-A-Little-Woozy-MDT-STJ-SYK-BSX-ABT-NUVA-ZOLL0826.aspx

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