Medtronic (MDT) saw share prices fall sharply Tuesday morning after it reported worse-than-expected earnings for the second quarter of 2017, thanks to slow revenue growth.
The medical technology, services and solutions company reported earnings per share of $1.12, as compared to street estimates of $1.11. Despite slightly outperforming expectations on earnings, Medtronic missed revenue estimates. The company posted revenues of $7.345 billion, compared to estimates of $7.46 billion.
"Q2 revenue was disappointing and did not meet our expectations," said Omar Ishrak, CEO of Medtronic, in a statement. "We faced issues that affected our growth, including slower than expected revenue as we await new product introductions, particularly in CVG and diabetes."
Medtronic fell 8.2% Tuesday on the news, hitting $73.94 per share and continuing to trend downward. Ishrak noted that the company sees its revenue struggles as "temporary" and "short term," and that he has faith Medtronic can restore revenue growth later in the year.
During its second quarter, Medtronic launched products in its cardiology and diabetes pipelines, but patients are waiting for new products rather than re-upping the ones they're currently using.
Because the second quarter was disappointing, Medtronic cut guidance for the full year. The company said it now expects mid-single digit growth, rather than the upper half of the mid-single digit the company previously forecast. Medtronic also expects earnings for 2017 to land between $4.55 to $4.60, down from previously guided $4.60 to $4.70.
Medtronic also provided some guidance on its plans for M&A in the back half of the year.