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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.”
