The shares of Medtronic dipped 1.2 % in premarket trade Tuesday after the medical equipment firm lowered its 2017 sales projection owing to concerns about the pandemic's impact on hospital schedules and staffing. The company now expects yearly sales to grow at a rate of 7% to 8%, down from the previous estimate of 9%.
EPS guidance of $5.70 at the midpoint of the projection range was also reiterated by the company. For the last three months, the adjusted profit per share was $1.32, which was higher than expected.
Staffing concerns slowed the company's growth in the second quarter, maintaining revenue at 3%. The total revenue of $7.8 billion was slightly lower than expected.
Ventilator sales, which had soared last year, began to decline as the pandemic faded. As a result, the medical surgical portfolio's revenue increased by only 1%. Medical surgical income increased by 6% when ventilators were excluded.
Sales in the United States declined 1% in the second quarter, to $4 billion, accounting for 51% of overall revenue. Non-U.S. developed market revenue increased by 1%, accounting for 32% of total sales.
The increase in overall sales was driven by emerging markets, which grew by 17%.