Shares in Medtronic PLC (NYSE:MDT) edged lower in pre-market trade after the world’s largest pacemaker and defibrillator manufacturer missed its sales targets in the first quarter of its fiscal year.
The Dublin-headquartered group wasn’t helped by a computer outage in its offices in June after experiencing some disruption to its IT system.
For the three months ended July 28, Medtronic generated revenues of US$7.39bn; 3% ahead of last year but US$60mln below what Wall Street analysts were looking for.
Sales in its cardiac and vascular business – which accounts for more than a third of the group’s revenues – rose 5.1% to US$2.65bn.
Medtronic was still able to beat earnings expectations though after it saw a dip in its effective tax rate, which fell from 15.7% in 2016 to 13% this year.
Adjusted diluted earnings climbed to US$1.12 per share; a 9% year-on-year increase and four cents above analyst forecasts. Adjusted net income also rose by just under 7% to US$1.54bn.
The New York-listed group also reiterated its full-year earnings and revenue forecasts. It expects adjusted earnings per share growth of between 9% and 10%, while revenues are forecast to rise by 4% to 5% on a constant-currency basis in the year ending April 2018.
Shares were down 3% to US$81 in pre-market trading.