JP Morgan Maintains Neutral on Medtronic

JP Morgan reiterates its Neutral rating on Medtronic

as the company posts weaker-than-expected Q3 results. JP Morgan says, "Revenues of $3.918B grew 2% reported (+1% cc; +0.4% organic). This was $91M below consensus and $58M below our forecast despite Fx adding $33M relative to our model. All in, organic sales growth was 0.4% in the quarter, down from 1.4% in the 1H of FY12. On the bottom line, MDT is reporting a non-GAAP number of $0.84, but that includes the EPS contribution (but not the sales contribution) from Physio-Control, which they sold during the quarter and had indicated would be treated as a discontinued operation. Excluding this gain, EPS was $0.82." MDT closed at $39.94 a share on Friday.