By Dave Sebastian
Medtronic PLC on Tuesday raised its fiscal 2020 adjusted-earnings guidance and set its outlook for the fourth quarter, which it expects the coronavirus outbreak to weigh on but can't yet quantify the effect.
Excluding the effect of the coronavirus outbreak, the medical-device company expects adjusted earnings of $5.63 a share to $5.65 a share, compared with its prior outlook of $5.57 a share to $5.63 a share. The outlook includes a seven-cent foreign-exchange effect, the company said.
Medtronic shares fell 0.8% in premarket trading after it reported higher third-quarter results, though sales were lower than expected.
For the fourth quarter, Medtronic said it is "comfortable" with the Wall Street consensus of an organic-revenue growth of about 4.5% and earnings of $1.64 a share, excluding the outbreak's effect. It expects fourth-quarter revenue growth to be hurt 0.8% to 1.4% if current exchange rates hold.
For the fourth quarter, analysts polled by FactSet expect earnings of $1.33 a share, or $1.64 a share on an adjusted basis. They see fourth-quarter revenue of $8.5 billion.
Analysts expect full-year earnings of $4.13 a share, or $5.60 a share on an adjusted basis, on revenue of $31.51 billion.
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