Medtronic Raises Forecast for Adjusted Profit Growth -- Earnings Review

   By Kimberly Chin 
 

Medical-device maker Medtronic PLC on Tuesday reported financial results for its fiscal first quarter before the market opened. Here's what you need to know:

PROFIT: Medtronic earned a profit of $1.08 billion, or 79 cents a share, up from the $1.02 billion, or 74 cents a share, earned a year earlier. Excluding items, Medtronic reported an adjusted profit of $1.17 a share, compared with $1.12 a share last year and analysts' forecasts of $1.11 a share.

REVENUE: Sales fell 0.1% to $7.38 billion, though it was above analysts' forecasts of $7.24 billion, according to a Thomson Reuters poll. U.S. revenue, which represents over half of Medtronic's total revenue, fell 4.4% to $3.86 billion.

EARNINGS OUTLOOK: The Dublin-based company expects its fiscal 2019 adjusted profit -- which excludes currency fluctuations -- to rise between 9% and 10% from a year earlier from its prior forecast of rising between 8% and 9%.

SALES OUTLOOK: Medtronic said it is targeting organic revenue growth in the range of 4.5% to 5%, up from a range of 4% to 4.5% as previously guided. However, it warned that sales would be negatively affected by exchange rates. Medtronic said it could expect a negative effect of about $420 million to $520 million.

STOCK: Shares of Medtronic rose 4.1% to $93.75 in premarket trading. Medtronic shares are up more than 11% this year.

Write to Kimberly Chin at [e-mail]

(END) Dow Jones Newswires

August 21, 2018 08:22 ET (12:22 GMT)

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