(Reuters) – Medical device maker Medtronic PLC missed fourth-quarter profit estimates on Thursday as Americans were forced to delay less urgent surgeries due to the COVID-19 pandemic, sending its shares down 3%.
Medical device makers have borne the brunt of the coronavirus outbreak as federal and state guidelines ask for elective surgeries such hip and knee replacements and certain heart procedures to be delayed, sapping the demand for devices used in the surgeries.
Medtronic did not give a forecast for full-year 2021, citing uncertainties surrounding the coronavirus outbreak, but said the company had ample liquidity and its board had approved a quarterly dividend of 58 cents per share, a 7.4% increase.
The company reported a fall in sales across all of its business segments, with its heart devices unit taking the biggest hit as patients delayed surgeries such as heart valve replacements and customers lowered bulk purchases.
Sales in the unit fell 34.3% to $2 billion in the quarter, while net sales declined 26.4% to $6 billion, missing estimates of $6.17 billion.
Smaller rival Boston Scientific Corp in April reported significant revenue declines across all its businesses in the United States and Europe due to procedure deferrals.
Excluding items, Medtronic earned 58 cents per share, missing analysts’ expectations of 68 cents.
Net income attributable to the company fell to $646 million, or 48 cents per share, in the quarter ended April 24, from $1.17 billion, or 87 cents per share, a year earlier.
(Reporting by Trisha Roy and Manas Mishra in Bengaluru; Editing by Amy Caren Daniel)