Medtronic forecasts annual profit below estimates amid dollar headwinds

(Reuters) – Medtronic Plc (MDT) on Thursday forecast annual profit below Wall Street estimates, as the medical device maker expects stronger dollar to continue dragging its sales down in international markets.

Medtronic has warned of a delayed improvement in earnings this year as its costs continue to remain high despite restructuring efforts.

It expects profit to be in the range of $5 per share to $5.10 per share for the fiscal year 2024, lower than analysts’ estimates of $5.20 per share, according to Refinitiv IBES data.

However, Medtronic reported a better-than-expected profit for the fourth quarter, helped by a recovery in non-urgent surgical procedures that were delayed during the pandemic as well as strong demand for its heart and diabetes devices.

Excluding items, the Dublin-based company reported a profit of $1.57 per share for the quarter, slightly above analysts’ average estimate of $1.56 per share.

Separately, Medtronic said it will buy Korea-based insulin patch maker EOFlow for a total consideration of about $738 million.

(Reporting by Bhanvi Satija and Raghav Mahobe in Bengaluru; Editing by Shweta Agarwal)

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