Medtronic shows low quarterly sales

Medical technology and services company Medtronic has announced its quarterly sales for all its major product lines showing sales below Wall Street’s expectations.

The company has also cut its full-year earnings forecast and have had its shares fall by more than 8%. Medtronic now expects $4.55 to $4.60 per share for the fiscal year ending April 28, 2017, down from its previous price of $4.60 to $4.70.

Chief executive Omar Ishrak cited a range of temporary factors as reasons for the disappointing quarterly sales. Weak sales in the Middle East as well as limits imposed by UK regulators on bulk purchases were some of the factors that Ishrak acknowledged.

Sales of Medtronic’s cardiovascular and diabetes products and minimally invasive therapies all missed analyst’s expectations.

Expected sales from the company’s cardiac and vascular unit were down $2.58 billion from $2.64 billion.

As well as 15 other products, Medtronic’s MiniMed 670G “artificial pancreas”, is expected to drive growth and take the company into the “mid-single-digit range” for fiscal 2017 revenue, according to Ishrak.