Medtronic Cuts Full-Year Earnings, Organic Revenue Guidance
23 November 2022 - 6:44PM
Dow Jones News
By Will Feuer
Medtronic PLC cut its guidance for organic revenue and full-year
adjusted earnings, and said the strong U.S. dollar will take a
bigger bite out of revenue growth than previously expected.
The medical-technology and services company said it expects
fiscal 2023 adjusted earnings to be between $5.25 a share and $5.30
a share, including an 18-cent-per-share reduction from currency
translations, assuming that rates from the beginning of November
hold for the remainder of the fiscal year. That guidance is down
from the range of $5.53 a share to $5.65 a share in adjusted
earnings that it provided in August.
The second quarter of the company's fiscal 2023 ended on Oct.
28.
The company also said it expects organic revenue to grow 3.5% to
4% in the second half of the fiscal year, which the company said
would mark acceleration over the first half of the year. In August,
however, the company reiterated its organic revenue guidance for
full-year growth of 4% to 5%.
Assuming that currency-exchange rates from the beginning of
November hold for the remainder of the fiscal year, revenue growth
will be reduced by about $1.74 billion to $1.84 billion, Medtronic
said. In August, the company forecast a $1.4 billion to $1.5
billion hit from foreign exchange for the fiscal year.
"Given a slower pace of market and supply recovery, we're
reducing our revenue expectations for the remainder of the year,"
Chief Financial Officer Karen Parkhill said. "On the bottom line,
we are driving expense reductions throughout the company to help
offset the lower revenue and the effects of cost inflation."
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
November 22, 2022 07:46 ET (12:46 GMT)
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