By Dhirendra Tripathi
Investing.com – Medtronic (NYSE:MDT) stock traded 0.3% lower in premarket Tuesday after it trimmed its annual revenue growth outlook to 7-8% from 9% earlier.
The company attributed its revised forecast to “the greater-than-expected market impact of the pandemic and healthcare system staffing challenges in the fiscal second quarter, which is expected to continue into the second half of the fiscal year.” Those challenges held the company behind analysts’ expectations in the second quarter.
The lower forecast from Medtronic follows a miss on revenue in the second quarter when the impact of the Delta variant still lingered. Through the last two years, the pandemic has kept treatment of other ailments disturbed. Staff at clinics and hospitals have remained overstretched while patients were scared to get treatment for other illnesses.
The healthcare firm is keeping its guidance for adjusted profit per share unchanged at $5.65-$5.75.
Ventilator sales fell in the second quarter as fewer patients needed them, as Delta began to wane toward the end of the quarter. Excluding the impact of ventilator sales declines, Medical Surgical revenue rose 6% on organic basis.
Organic revenue in the Cardiovascular portfolio rose 3%.
Geographically, emerging markets grew mid-teens led by China, Latin America, Middle East & Africa, and South Asia. Emerging markets revenue of $1.4 billion was 18% of company’s total revenue and offset the decline in U.S. and low-single-digit growth in non-U.S. developed countries.
Second quarter total revenue rose 3% to $7.8 billion. Adjusted profit per share rose 29% to $1.32 due to higher margins.