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Medtronic Shares Slip as Revenue Lags Analyst Forecasts

Medtronic revenue climbed 2.6% to $7.85 billion in the latest quarter but trailed the FactSet analyst consensus of $7.97 billion. The stock is lower.
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Medtronic  (MDT) - Get Medtronic Plc Report shares slipped Tuesday after the medical equipment maker reported revenue that lagged analysts’ expectations.

For the fiscal second quarter ended Oct. 29, revenue climbed 2.6% to $7.85 billion from $7.65 billion in the year-earlier quarter. The latest figure trailed the FactSet analyst consensus of $7.97 billion.

The Covid pandemic and health personnel shortages have hurt revenue by depressing the number of medical procedures involving Medtronic products.

The Dublin company's stock at last check traded at $115.04, down 1.6%. It had dropped 10% in the three months through Monday.

Net income registered $1.31 billion, or 97 cents a share, in the latest quarter, more than double the $489 million, or 36 cents a share, of a year earlier.

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For the fiscal year ending about April 29, the company affirmed its projection for earnings of $5.65 to $5.75 a share but lowered its revenue forecast to growth of 7% to 8% from the previous view of 9%.

In August, Medtronic beat Wall Street's quarterly earnings expectations and raised its full-year guidance, driven by a recovery in elective procedures following the Covid shutdown.

For the quarter ended July 30, Medtronic reported net income of $763 million, or 56 cents a share, up from $487 million, or 36 cents a share, a year earlier.

Adjusted earnings came to $1.41 a share, beating the FactSet analyst consensus of $1.32.

Revenue totaled $7.99 billion, up 23% from a year earlier and coming in ahead of the FactSet consensus of $7.87 billion.

The company said that its first-quarter results "reflect a strong recovery from the impact of the Covidd-19 pandemic on elective procedures that the company experienced in 2020."