Medtronic shares slip on missed Q2 sales mark, lowered outlook
BY
Medtronic (NYSE:MDT) shares dropped in pre-market trading today after the world’s largest medical device company missed Wall Street’s expectations with its fiscal 2nd-quarter sales and lowered its outlook for the rest of the year.
Fridley, Minn.-based Medtronic posted profits of $1.12 billion, or 80¢ per share, on sales of $7.35 billion for the 3 months ended Oct. 28, for bottom-line growth of 114.4% on sales growth of 4.1% compared with Q2 2015.
Adjusted to exclude 1-time items, earnings per share were $1.18, 6¢ ahead of the forecast on The Street. But analysts there were looking for sales of $7.46 billion; investors reacted by pushing MDT shares down -7.3% to $74.70 in pre-market activity today.
“Q2 revenue was disappointing and did not meet our expectations. We faced issues that affected our growth, including slower-than-expected revenue as we await new product introductions, particularly in CVG and Diabetes,” chairman & CEO Omar Ishrak said in prepared remarks. “Despite this revenue shortfall, we produced a strong improvement in operating margins and double digit constant currency earnings per share growth.”
OrthoSpineNews
OrthoSpineNews.com is the preferred aggregator of all news in the orthopedic and spine industry. You can subscribe for our daily email, follow us on twitter or download our app for iPhone and Android.