By Joe Carlson Star Tribune – August 22, 2017
Medtronic missed quarterly sales targets because of a weeklong computer outage and slow manufacturing of glucose sensors, but the Minnesota-run medical device company still beat earnings expectations after a decline in its sales tax rate.
Medtronic shares dipped about 2 percent to $81.88 in early morning trading Tuesday.
Revenue from sales of medical devices from pacemakers to heart valves increased 3 percent to $7.39 billion in the three months ended July 28. Wall Street analysts had forecast $60 million more in sales than Medtronic reported.
However, the company beat earnings expectations by four cents per share, with adjusted diluted earnings of $1.12 per share. Adjusted net income climbed 6.7 percent to $1.54 billion, and the operating margin climbed half a percentage point, to 27 percent.
“We have now entered a period of clear acceleration in our innovation cycle, and we expect to see increasing momentum coming from several new product launches over the balance of the fiscal year,” chief executive Omar Ishrak said on the conference call Tuesday.