Medtronic profit forecast hit by stronger dollar, inflation
Dublin: Medtronic Plc on Thursday forecast annual profit below Wall Street estimates, as a strong U.S. dollar and persistently high costs of raw goods weighed on the medical device maker's earnings, sending its shares down more than 4% in early trading.
The company warned in February that rising raw material prices and high wages due to stubbornly high inflation would continue to impact its full-year profit.
Medtronic forecast profit of $5 per share to $5.10 per share for the fiscal year 2024, below analysts' estimates of $5.20 per share, according to Refinitiv.
Some analysts called the forecast conservative and said the company could increase it later in the year, given that non-urgent medical procedures using its devices have started to recover from its trough reached during the pandemic.
With non-urgent surgeries coming back and the recent approval of a new version of its insulin pump, "the guide does seem conservative to us," Evercore ISI analyst Vijay Kumar said in a note.
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