Medtronic Inc. has officially reduced its long-term sales growth outlook amid a host of pressures including a sluggish market for new implantable defibrillators, but it still aims to increase earnings in a two-figure range.
William Hawkins, Medtronic's chairman and chief executive, discussed the medical-device company's outlook during a J.P. Morgan health care conference Monday. He also reiterated financial guidance for the current fiscal year, which runs through late April.
Medtronic had previously aimed to increase sales over the next five years in a 9 to 11 percent range, excluding the effect of foreign currency rates. On Monday, the company reduced the range for the foreseeable future to 5 to 8 percent.
The company also restated its long-term earnings growth goal of 10 percent-plus on Monday. It had listed that growth target as 11 to 14 percent as recently as November, and spokesman Steven Cragle said that Medtronic's earnings goals haven't changed despite the lowered sales view.
If sales come in at the low end of that range, however, "it would be a challenge to get to that double-digit EPS growth," Hawkins said during the conference, which was broadcast on the Web.
The company is feeling the effects of competitive pressure both in the market for implanted defibrillators, which it leads, and in the market for stent devices that prop open heart arteries.
DOW JONES NEWS SERVICE
