Medtronic (NYSE:MDT) today reiterated its previous full fiscal year guidance in light of an information technology system malfunction in June, saying that the disruption along with other circumstances have moved their 4-5% growth rate to the lower end of the range for their fiscal 1st quarter.
Yesterday, Fridley, Minn.-based Medtronic saw shares drop nearly 3% after CFO Karen Parkhill spoke to Bloomberg News about the IT disruptions and their effect on the medtech giant’s upcoming fiscal 1st quarter earnings.
In its update today, the company said that it is continuing to perform “a root cause analysis” of the IT disruption, and that it believes the issue was “an internal technical infrastructure issue.”
“The company feels good about its 1st quarter and the full fiscal year ahead and remains pleased with its robust pipeline and the reception from customers to its innovative products,” Medtronic wrote in an SEC filing.
Medtronic reiterated its guidance for revenue growth and for its adjusted diluted EPS growth for Q1 of 2018 at the “upper end of the high-single digit range,” between 9% and 10%, saying it was due to “the underlying strength of its businesses” and tax benefits it expects to receive in the 1st quarter, which ends July 28.
The company did clarify that its previous guidance did not include the impact of its $6.1 billion divestiture of its patient monitoring and recovery division to Cardinal Health (NYSE:CAH) , which it said it expects to close in the 2nd fiscal quarter.