Medtronic's quarterly revenue misses; shares skid

Markets Reuters

Omar Ishrak, CEO of Medtronic, speaks during an IBM keynote address at the 2016 CES trade show in Las Vegas, Nevada, January 6, 2016. REUTERS/Steve Marcus

Omar Ishrak, CEO of Medtronic, speaks during an IBM keynote address at the 2016 CES trade show in Las Vegas, Nevada, January 6, 2016. REUTERS/Steve Marcus (Copyright Reuters 2016)

Medtronic Plc , the world's largest standalone medical device maker, reported quarterly revenue below expectations, hurt by slowing growth in its diabetes and heart product divisions.

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Medtronic's shares were down 6.12 percent in premarket trading on Tuesday.

The acquisitive company, which completed its near $50-billion Covidien deal last year, has been focusing on the minimally invasive surgical market.

Medtronic, which redomiciled to Ireland through the Covidien deal, currently relies on its core business of developing and selling heart devices, spinal implants, insulin pumps among others.

Revenue at its diabetes group rose 3 percent to $462 million in the second quarter ended Oct. 28.

The company said growth in its diabetes unit was slower in the quarter, hurt by the timing between approval and shipments for its MiniMed devices.

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"We faced issues that affected our growth, including slower-than-expected revenue as we await new product introductions, particularly in cardiac and vascular group and diabetes," CEO Omar Ishrak said.

The Dublin, Ireland-based company also cut its fiscal 2017 adjusted earnings to a range of $4.55-$4.60 per share from $4.60-$4.70.

Revenue rose 4 percent to $7.35 billion, missing the average analysts' estimate of $7.46 billion, according to Thomson Reuters I/B/E/S.

The company's net income rose to $1.11 billion, or 80 cents per share, in the quarter, from $520 million, or 36 cents per share, a year earlier. (http://bit.ly/2gFRNT8)

Excluding items, Medtronic earned $1.12 per share, above analysts' average estimate of $1.11 per share.

(Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Anil D'Silva and Martina D'Couto)