Medtronic stock falls after profit beats expectations but revenue misses, and outlook is downbeat

Shares of Medtronic PLC
MDT,
-6.14%
dropped 2.4% in premarket trading Tuesday, after the medical devices maker reported fiscal second-quarter profit that topped expectations but revenue that missed and provided a downbeat full-year outlook, citing weakness in procedure volumes in certain businesses and the pricing impact of procurement in China. Net income for the quarter to Oct. 28 fell to $427 million, or 32 cents a share, from $1.31 billion, or 97 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.30 beat the FactSet consensus of $1.28. Sales fell 3.3% to $7.59 billion, below the FactSet consensus of $7.70 billion, as cardiovascular revenue fell 2%, medical surgical revenue dropped 10% and diabetes revenue lost 5%, while neuroscience revenue rose 2%. For fiscal 2023, the company lowered its revenue expectations given a “slower pace of market and supply recovery. The company expects adjusted EPS of $5.25 to $5.30, below the FactSet consensus of $5.52. The stock has lost 11.6% over the past three months through Monday while the S&P 500
SPX,
+0.27%
has declined 4.5%.