By Dhirendra Tripathi

Investing.com – Medtronic Premarket trading on Tuesday saw the stock fall 1.2% after the premarket trader noticed that the manufacturer of medical devices had reduced its revenue guidance for the year. This was due to fears about a prolonged disruption in hospital staffing and schedules as a result.

According to the company, its revenue is now expected to grow 7%-8 % versus the previous estimate of 9%.  The company also reiterated its $5.70 EPS guidance at the middle of its forecast range. The adjusted profit per share was $1.32 in the three most recent months, which is higher than consensus.

Staffing difficulties hampered the company’s growth in the second quarter. The overall revenue was $7.8billion, slightly lower than expected.

Ventilators, which saw sales rise last year, were hit hard by the pandemic. The result was that revenue from medical surgical products rose just 1%.

The medical surgical revenue increased by 6 percent, exempting ventilators. 

Fourth quarter U.S. revenues of $4 billion fell by 1%, or 51%, of total sales. Non-U.S. market revenues rose by 1%, accounting for 32% overall sales.

The rise in revenue was driven by 17% growth in emerging markets.