Medtronic (NYSE:MDT) shares dipped slightly before hours on second-quarter results that missed the consensus revenue forecast.
The Fridley, Minnesota-based medtech giant posted profits of $1.3 billion, or 97¢ per share, on sales of $7.8 billion for the three months ended Oct. 29, 2021, nearly tripling its bottom-line on sales growth of 2.6%.
Adjusted to exclude one-time items, earnings per share were $1.32, 3¢ ahead of Wall Street, where analysts were looking for sales of $8 billion.
Each of Medtronic’s major business arms saw year-over-year global revenue growth, with cardiovascular (up 3.7%) and neuroscience (3.5%) increasing the most. Medtronic’s diabetes business saw increased revenues of 1.9% and its medical surgical segment increased by 0.6%.
The largest dip came within the medsurg business, with the company’s respiratory, gastrointestinal and renal dealings dipping in revenues by 10.2%. Cranial and spinal technologies (within the neuroscience business) fell 0.4%.
Medtronic took a big hit in its U.S. business, with all segments experiencing revenue dips. Diabetes was hit hardest, dropping 8.1%, followed by medsurg (2.6% decrease), cardiovascular (0.3%) and neuroscience (0.2%).
“Our second-quarter results reflect focused execution of our strategy and the strong underlying health of the business, despite the market impact of the pandemic resurgence and healthcare system staffing challenges on medical procedure volumes, particularly in the U.S., which affected our quarterly revenue growth,” Medtronic Chairman & CEO Geoff Martha said in a news release. “During the quarter, we continued to advance our pipeline, launched new products, and grew share in the majority of our businesses. Looking ahead, as our markets recover, Medtronic is one of the best-positioned companies in healthcare.
“We have an expansive pipeline of leading technology, a robust balance sheet, and an expanding roster of proven top talent. Coupled with our revitalized operating model and new competitive mindset, we’re poised to accelerate and sustain growth.”
Medtronic reaffirmed its expectation to log adjusted EPS of between $5.65 and $5.75 for the full year. The company, citing the greater-than-expected market impact of COVID-19 and healthcare system staffing challenges, updated its prior sales guidance for growth between 7% and 8%, a slight decrease from previous projections of 9% growth.
MDT shares were down 0.4% at $116.40 per share before the market opened today.