Medtronic (NYSE:MDT) said its stock fell Tuesday, after the company reported a slight earnings beat on revenue that fell short of the consensus estimate. Medtronic’s results were hit by a stronger U.S. dollar and a slower-than-expected rebound in procedures using its devices.
The company reported worldwide revenue of $7.585 billion, a decrease of 3% as reported and an increase of 2% on an organic basis. The organic comparison excludes a $457 million negative impact from foreign currency translation and a $25 million contribution from the company's fiscal first quarter acquisition of Intersect ENT, which is reported in the Specialty Therapies division in the Neuroscience Portfolio. Unless otherwise stated, all revenue growth rates in this press release are on an organic basis, which excludes the impact of foreign currency translation and revenue from the Intersect ENT acquisition.
The company's second quarter organic revenue results reflect slower supply recovery or lower than anticipated underlying market procedure volumes in certain businesses and the pricing impact of volume-based procurement in China . These challenges were partially offset by strength in certain product lines, including Transcatheter Aortic Valves (TAVR), Cardiac Pacing, Core Spine in the United States , and Diabetes in International.
As reported, second quarter GAAP net income and diluted earnings per share (EPS) were $427 million and $0.32 , respectively, both decreases of 67%. As detailed in the financial schedules included at the end of this release, second quarter non-GAAP net income and non-GAAP diluted EPS were $1.725 billion and $1.30, respectively, decreases of 4% and 2%, respectively.
MDT shares dumped $4.35, or 5.3%, to $77.94.
