Medtronic Cuts Full-Year Earnings, Organic Revenue Guidance

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 [e-mail]

(END) Dow Jones Newswires

November 22, 2022 07:46 ET (12:46 GMT)

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