After a quarter of lower sales and demand, Medtronic ($MDT) has lowered its annual earnings expectation for the second quarter in a row. Its second quarter's profits exceeded analysts' expectations, but the fiscal-year earnings are slated to be $3.38 to $3.44 per share, down from $3.40 to $3.48.
"In the U.S., we continue to see a procedural slowdown as less screenings are occurring and patients are electing to wait longer for their procedures," Medtronic Chief Financial Officer Gary Ellis told analysts, according to Reuters. The company's implantable cardioverter defibrillators can cost up to $35,000, making them a luxury few are willing to purchase during harsher economic times. Ellis also sees patients postponing spinal surgeries, lowering demand for the company's spinal products.
Medtronic has also seen pressure on device prices abroad, particularly in Japan. Shares fell one percent after the lowered expectations were announced.
- check out Reuters' article