Medtronic's stock tumbles after revenue miss, downbeat profit outlook
Shares of Medtronic PLC's tumbled 5.7% in premarket trade Tuesday toward a 5 1/2-month low, after the medical technology company reported fiscal second-quarter sales that missed expectations and cut its profit outlook. Earnings for the quarter to Oct. 28 rose 114% to $1.12 billion, or increased 122% on a per-share basis to 80 cents. Adjusted earnings per share came to $1.12, above the FactSet consensus of $1.11. Revenue increased 4% to $7.35 billion, missing the FactSet consensus of $7.45 billion. The company's press release did not include a table with year ago results. "We faced issues that affected our growth, including slower than expected revenue as we await new product introductions, particularly in CVG and diabetes," said Chief Executive Omar Ishrak. He said some of the challenges that affected second-quarter revenue could persist in the near term. As a result, the company cut its full fiscal year adj. EPS outlook to $4.55 to $4.60 from $4.60 to $4.70. The stock has gained 4.8% year to date through Monday, while the SPDR Health Care Select Sector ETF has lost 2.9% and the S&P 500 has climbed 7.6%.
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