Medtronic Chairman and CEO Omar Ishrak
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Medtronic missed estimates for third-quarter revenue on Tuesday as its heart device unit reported a slowdown in demand ahead of new product launches, and said it expects its fourth quarter to take a hit from the coronavirus outbreak.
Shares of the medical device maker fell 1.7% to $115.34 in trading before the bell.
Medtronic said it will monitor and assess the impact to its business from coronavirus that has claimed nearly 1,900 lives, and provide an update later in the quarter.
China is home to the company’s largest manufacturing and research facilities outside the United States, employs nearly 7,000 people, and is expected to contribute to nearly 7% of Medtronic’s revenue this year.
Sales at Medtronic’s cardiac and vascular unit which makes heart valves and pacemakers, rose 1.2% to $2.82 billion in the quarter, accounting for 36.5% of total revenue.
Analysts were expecting sales of $2.86 billion, according to five analysts polled by Refinitiv.
Net income attributable to the company rose to $1.92 billion, or $1.42 per share, in the quarter ended Jan. 24, from $1.27 billion, or 94 cents per share, a year earlier.
Excluding items, Medtronic earned $1.44 per share, beating the average analyst expectation of $1.38 per share and net sales rose 2% to $7.72 billion, falling short of estimates of $7.81 billion.
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