Medtronic indicates hurricane revenue hit less than feared
Medtronic lost as much as $65 million in revenue in the weeks following Hurricane Maria, which incapacitated the medical device makers four factories in Puerto Rico for weeks after making a direct hit on the island Sept. 20.
Medtronic, which is based in Ireland and operated from executive offices in Minnesota, had warned investors earlier in the quarter that the storm would cut revenue by as much as $250 million in the quarter. But the company said Wednesday its employees made repairs faster than expected.
The creativity, dedication and persistence of our employees both on and off the island in dealing with the aftermath of Hurricane Maria was simply incredible, CEO Omar Ishrak said in a news release after markets closed Wednesday.
About 5,000 employees and contractors work for Medtronic in Puerto Rico. Production at Medtronics four plants on the island ramped up to near pre-hurricane capacity by Oct. 18.
Medtronic now expects to report about $7.05 billion in companywide revenue for the three-month period ended Oct. 27, which would be a 3 percent increase over the same quarter last year after adjusting for divestitures and international currency impacts. The hurricane cut earnings by about 3 cents per share.
The updated figures came as part of a preliminary report ahead of Medtronics earnings call scheduled for Nov. 21.
Medtronic issued the guidance after the close of regular trading Wednesday. Its stock climbed about 2 percent, to $79.50 per share in after-hours trading.
Joe Carlson 612-673-4779