By Dhirendra Tripathi
Investing.com – Medtronic (NYSE:MDT) stock fell 1.2% in premarket trading Tuesday after the medical devices-maker cut its annual revenue guidance on fears of extended disruption to hospital schedules and staffing due to the pandemic.
The company sees its annual revenue now growing 7%-8% compared to the 9% growth it estimated earlier. At the same time, the company reiterated its EPS guidance of $5.70 at the midpoint of its forecast range. Adjusted profit per share for the last three months was $1.32, ahead of consensus.
Staffing issues bogged down the company in the second quarter, keeping revenue growth at 3%. Overall revenue of $7.8 billion was slightly below expectations.
Sales of ventilators, which boomed last year, suffered as the pandemic waned. As a result, revenue from the medical surgical portfolio rose only 1%.
Excluding ventilators, medical surgical revenue increased 6%.
Second-quarter U.S. revenue of $4 billion, amounting to 51% of the total, fell 1%. Non-U.S. developed market revenue rose 1% and accounted for 32% of overall sales.
Emerging markets, with 17% growth, drove the rise in overall revenue.