Medtronic (NYSE:MDT) shares dipped today on third-quarter results that beat Wall Street’s earnings forecast but failed to top the consensus sales projections.
The Fridley, Minn.–based medtech giant posted profits of $1.9 billion, or $1.42 per share, on sales of $7.7 billion for the three months ended Jan. 24, 2020, for a 5.1% bottom-line gain on sales growth of 2.3%.
Adjusted to exclude one-time items, earnings per share were $1.44, 6¢ ahead of Wall Street, where analysts were looking for sales of $7.8 billion.
Medtronic chairman & CEO Omar Ishrak said that the company’s organic revenue growth was light this quarter, mostly due to “transient issues,” which may at least partly explain the company’s shares taking a dip.
“We delivered robust margin expansion and free cash flow growth this quarter,” Ishrak said in a news release. “As we look ahead to the fourth quarter and fiscal year 2021, our top-line growth acceleration is on track as we begin to realize the benefits of new product launches and put the challenges of the third quarter behind us.”
Ishrak noted that the impact of the recent coronavirus (COVID-19) outbreak is expected to have a negative impact on Medtronic’s Q4 results, but the company said the duration and magnitude can’t be quantified right now.
Medtronic said it now expects to log adjusted EPS of $5.63 to $5.65 in fiscal 2020, compared with $5.57 to $5.63 previously. The company did not offer 2020 sales guidance.
MDT shares were down -3.7% at $113.04 per share in midday trading today.
