Medtronic makes medical devices.
David Maung/Bloomberg
Medical-device company Medtronic reported sales short of Wall Street’s expectations and slashed its outlook for revenue growth on Tuesday.
Shares in Medtronic (ticker: MDT) fluctuated in the U.S. premarket but were trading largely flat after the company released earnings for the quarter ending Oct. 29, which it reports as the second quarter of fiscal year 2022. Medtronic is registered in Ireland but primarily operates in the U.S.
The group reported revenue of $7.85 billion in the quarter, up 3% from last year’s levels but short of the $7.96 billion expected by analysts, according to FactSet data.
Markets are unlikely to favor the outlook for revenue at Medtronic, which also cut its revenue guidance for the remainder of the fiscal year. Medtronic now expects sales growth of 7% to 8%, down from prior guidance of around 9%.
This was due to “greater-than-expected market impact of the pandemic and healthcare system staffing challenges in the fiscal second quarter, which is expected to continue into the second half of the fiscal year,” the group said in its earnings release.
But the company reiterated its full-year earnings per share (EPS) guidance in a range of $5.65 to $5.75. And it was earnings that shone bright in the latest release, with adjusted operating profit of $2.1 billion yielding EPS of $1.32, ahead of the $1.29 predicted by Wall Street.
Write to Jack Denton at [email protected]
