What's Going To Drive Growth At Medtronic Going Forward

This piece on Medtronic is intended to be the first of a two part series. Here are the first two paragraphs. Read the complete post here.

Medtronic (MDT) is a global leader in medical device technology from concept to sale. Although it is dwarfed by Johnson & Johnson (JNJ), General Electric (GE), and Siemens AG (SI), it is the world's largest medical device focused company. It has produced steady top line growth for over a decade.

Overall the medtech industry should experience a CAGR of about 4.5% over the next five years. Although in-vitro diagnostics is likely to be the fastest growing segment in the coming years, this is a thriving industry expected to grow across the board.

In this post, I would like to outline the factors likely to allow Medtronic to grow at a modest, but steady rate over the next five years and beyond. In the near future, once the market produces more data on recent product launches, I'll cover the negatives. More specifically, the US excise tax on medical devices, pricing issues in Asia, CoreValve litigation, diabetes, and transcatheter valve competition.

Continuing, but tapering growth

Over the past decade Medtronic has managed to grow its top line by a CAGR of 8.76%. Per share earnings have also steadily increased at a slightly higher rate. I've included a chart below with quarterly periods to illustrate the company's rock steady earnings.

Again, you can only read the complete post at Seeking Alpha. Here's the link.