J.P. Morgan Lowers MDT FY12 Estimate

J.P. Morgan is lowering its FY12 estimate on Medtronic Inc. (NYSE: MDT).

“Following the closing of the Ardian acquisition, we are lowering our FY12 EPS estimate another $0.03 to $3.53 (+4.4%),” J.P. Morgan writes. “This now puts us $0.13 below Street consensus ($3.66). On its own, Ardian is $0.05-.06 dilutive to FY12E; however, we chose to offset some of the dilution under the assumption the new CEO will pursue additional cost-cutting.

“Yet, even before Ardian we were $0.10 below FY12 consensus. Now, with the stock having risen on the back of the market's move and the CEO change, we thought it worth calling out the risk to numbers ahead of what we expect to be a period of significant downward estimate revisions in the months ahead.”

Medtronic Inc. closed Friday at $38.51.