Medtronic shares fall after earnings beat expectations but revenue falls and outlook is upbeat
Shares of Medtronic PLC
MDT,
fell 2.4% in premarket trading on Tuesday, after the medical device maker reported second-quarter financial profit that beat expectations but fell short of revenue and offered a negative full-year outlook. not positive, citing the low volume of procedures in certain firms and the weak price impact of procurement in some firms. China. Net income for the quarter through October 28 fell to $427 million, or 32 cents a share, from $1.31 billion, or 97 cents a share, in the same period last year . Excluding non-recurring items, adjusted earnings per share were $1.30, well above the FactSet consensus of $1.28. Revenue fell 3.3% to $7.59 billion, well below the FactSet consensus of $7.70 billion, due to a 2% drop in cardiovascular revenue, a 10% drop in medical surgery revenue, and a 10% drop in revenue. diabetes fell 5%, while neuroscience revenue grew 2%. For fiscal year 2023, the company has lowered its revenue expectations due to the “slower pace of market recovery and supply. The company expects adjusted EPS from $5.25 to $5.25” $.30, below the FactSet consensus of $5.52 Stocks have lost 11.6% in the past three months so far Monday while the S&P 500
SPX,
fell by 4.5%.
