Medtronic Earnings Forecast Downwards on Stronger Dollar, Inflation, ET

Medtronic Earnings Forecast Downwards on Stronger Dollar, Inflation, ET

New Delhi: medtronic PLC said on Thursday it had a strong outlook, expecting full-year earnings to underperform Wall Street estimates USD High raw material prices also weighed on the medical-device maker’s earnings, sending its stock down more than 4% in early trading.

In February, the company warned of persistently high raw material prices and rising wages. inflation It will continue to affect full-year profits.

medtronic Refinitiv expects earnings in the 2024 fiscal year to range from $5 to $5.10 per share, below analyst estimates of $5.20 per share.

Some analysts called the forecast conservative and said the company could raise its forecast later this year given: non-emergency medical procedures With that device, we are starting to recover from the trough we reached during the period. pandemic.

Evercore ISI analyst Vijay Kumar wrote in a note that “this guide looks conservative to us” in the wake of the resumption of non-urgent surgeries and the recent approval of new versions of insulin pumps. said.

The Dublin-based company announced an undisclosed number of job cuts last month, freeing up some of its smaller businesses, such as patient monitoring and respiratory interventions, to focus on its core areas of heart and diabetes. We are also considering.

On Thursday, Medtronic announced it would acquire South Korea-based insulin patch maker EOFlow for a total of KRW 971 billion ($738 million) to add wearable patches to its diabetes portfolio.

Medtronic expects EOFlow’s wearable and disposable insulin delivery device to complement its recently approved US glucose monitoring system, the MiniMed 780G.

CEO Jeff Martha said the deal was “one of our traditional tuck-in type deals,” adding that Medtronic still has a strong appetite for a similar deal.

Excluding items, the company reported earnings of $1.57 per share for the quarter, slightly above analyst estimates of $1.56 per share.

  • Published May 26, 2023 at 1:50 PM IST

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