Medtronic Reaffirms Revenue Growth Guidance, Updates Segment Outlook
November 19 2019 - 9:32AM
Dow Jones News
By Dave Sebastian
Medtronic PLC (MDT) said it continues to expect organic revenue
in fiscal 2020 to rise about 4% but nudged up organic revenue
growth guidance for three segments that comprise 92% of revenue as
it raised its full-year adjusted earnings outlook.
The medical-device company on Tuesday said it now sees revenue
in its cardiac and vascular group increasing 2.5% to 3% for the
year, up from its prior guidance of 2.5%.
It expects the metric in its minimally invasive therapies group
to rise 5% to 5.5%, up from the previous outlook of 5%.
The company sees its restorative therapies group's organic
revenue growing 4.5% to 5%, up from the 4% to 4.5% it previously
guided.
For the diabetes group, however, the company sees
low-single-digit organic growth, compared with its prior outlook of
the lower end of 6% to 8%, as it faces competitive pressures in the
U.S. while awaiting new product approval.
Medtronic raised its full-year adjusted earnings guidance to
between $5.57 a share and $5.63 a share from $5.54 to $5.60 a
share.
Shares of Medtronic are down 0.6% to $110.60.
For the third quarter, the company said it sees organic revenue
growing more than 4%, with currency weighing on the metric by 0.5%
to 1.2%.
It sees the organic growth in the cardiac and vascular group to
accelerate 3.5% to 4%; the diabetes group to be flat to slightly
down; and the minimally invasive therapies and restorative
therapies groups to grow 4.5% to 5%.
For the full year, the company said it continues to expect
operating margin to rise by about 0.4% on a constant-currency
basis, and for it to slightly improve in the third quarter.
For the third quarter, Medtronic said it sees adjusted nominal
tax rate to be in the range of 15% to 15.25% and an annual range of
15% to 15.5%.
Medtronic said it anticipates fourth-quarter growth to
accelerate as it awaits U.S. or European approval for its
products.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
November 19, 2019 10:17 ET (15:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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