Medtronic Misses on Top Line, but Beats Profit Expectations
Medical device manufacturer Medtronic (NYSE: MDT) beat profit expectations in its fiscal third quarter, but reported disappointing revenue, and shares were falling about 4% Tuesday afternoon. GAAP earnings per share grew 51% to $1.42, and a 12% increase in non-GAAP EPS to $1.44 beat the analysts' consensus of $1.38. Revenue increased 2.3% to $7.7 billion, below analysts' $7.8 billion consensus estimate.
Management said on the conference call that the company's top-line performance was below internal expectations, and although it blamed "transient" issues for the miss, it's making some changes to improve predictability. Medtronic said that customers postponed purchases ahead of new product announcements, and that an upgrade of its enterprise resource planning software resulted in a temporary inability to meet demand for surgical products from its Minimally Invasive Therapies Group.
Image source: Medtronic.
Source Fool.com
