(Reuters) -Medtronic Plc on Tuesday lowered its full-year profit outlook, blaming a stronger dollar and a slower-than-anticipated recovery from supply chain disruptions.
Shares of the Dublin-based company fell nearly 2.5% in U.S. premarket trading.
The medical device maker now sees its adjusted profit in the range of $5.25 to $5.30 per share in fiscal 2023, compared with $5.53 to $5.65 it previously expected.
Total worldwide revenue fell 3.3% to $7.59 billion in the second quarter ended Oct. 28.
“Slower-than-predicted procedure and supply recovery drove revenue below our expectations this quarter,” Medtronic Chief Executive Geoff Martha said.
During the year, the ongoing shortage of semiconductor chips and the stronger dollar have heavily impacted the company’s medical surgical business, which sells stapling and dissection devices. The unit was the most affected by a slow recovery in the quarter, with its revenue falling 10% to $2.07 billion.
Other medical device makers such as Boston Scientific Corp and Stryker recently also lowered their full-year profit forecast and cautioned about the persistence of supply chain constraints and the stronger dollar in the near term.
Excluding items, Medtronic reported a profit of $1.30 per share, compared with analysts’ estimates of $1.28, according to Refinitiv IBES.
(Reporting by Khushi Mandowara and Bhanvi Satija in Bengaluru; Editing by Maju Samuel)
