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Medtronic Earnings Fall Short of Estimates, Shares Tumble 5%

Published 26/05/2022, 18:44
Updated 26/05/2022, 18:44

By Sam Boughedda

Investing.com -- Medtronic PLC (NYSE:MDT) reported its fourth-quarter and full-year results, which saw the company fall short of estimates after being impacted by global supply chain issues. 

The medical device maker tumbled 5% on Thursday following the announcement. 

Revenue decreased 1% compared to last year's quarter to $8.09 billion, but fell below forecasts of $8.44 billion. Earnings per share were unable to match forecasts of $1.57, coming in at a reported $1.52. 

Meanwhile, full-year revenue increased 5% to $31.69 billion and earnings per share for the year came in at $3.73. 

"Global supply chain and COVID-19 controls in China created acute impacts to our results in the fourth quarter," said Geoff Martha, Medtronic chairman, and chief executive officer. "We understand the root causes, we're addressing them, and we expect them to resolve over the near-term."

The company raised its cash dividend to $0.68 per share for the first quarter.

Furthermore, Medtronic provided a downbeat outlook due to strict lockdowns causing significant supply chain issues. 

The company anticipates 2023 revenue growth of 4% to 5%. Therefore, if foreign currency exchange rates hold, 2023 revenue would be negatively affected by approximately $1 billion to $1.1 billion.

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