By Robb M. Stewart
Medtronic PLC affirmed financial guidance for fiscal 2023 but cautioned the dent from foreign exchange translation could be greater than previously expected if recent rates hold.
The Irish healthcare-technology company said Tuesday that while it continues to expect organic revenue growth for the fiscal year of between 4% and 5%, the negative effect on revenue if foreign exchange rates hold could be about $1.4 billion to $1.5 billion versus the $1 billion to $1.1 billion impact it previously forecast.
It said adjusted earnings for the year are still expected to be between $5.53 and $5.65 a share, including a hit of 17 cents to 22 cents from foreign currency.
“We expect organic revenue growth to improve each quarter, with the second half of the fiscal year much stronger than the first,” Medtronic Chief Financial Officer Karen Parkhill said.
Medtronics’ sales fell to $7.37 billion in the fiscal second quarter, down 7.7% from a year earlier, though it said that on an organic basis revenue was down 4% if it excludes a $351 million negative impact from foreign currency translation and a $20 million contribution from a recent acquisition.
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