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Medtronic off its pace
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August 6, 1998: 12:32 p.m. ET
Medical technology maker warns that earnings won't pass Street exam
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NEW YORK (CNNfn) - Shares of cardiac technology supplier Medtronic Inc. fluttered lower Thursday after the company warned that even though corporate earnings had improved, they still won't meet Wall Street expectations.
Medtronic said it will report earnings per share of 32 cents in the first quarter of fiscal 1999, up from 31 cents a year ago, adjusted for an intervening stock split.
Revenue grew to $653 million in the quarter from $646 million a year ago.
However, Wall Street -- which had expected the company to earn 34 cents per share -- was quick to react to the news, knocking Medtronic shares (MDT) down 7-3/8 to 52 in heavy morning trading.
"It was a challenging quarter," said Medtronic Chairman and CEO William George, "but we believe Medtronic is positioned for its full fiscal year to substantially surpass the $1.27 per share (before one-time charges) the company earned last year."
On the positive side, the company said it projects revenue growth in fiscal 1999 due to an increased emphasis on launching new products in the U.S. market, in particular the Kappa 700 pacemaker and the Gem DR defibrillator, both of which are successful overseas.
Medtronic also said it still expects to complete its acquisitions of Physio-Control International Inc. and Avecor Cardiovascular Inc. in the fall.
The company will release complete financial results Aug. 18. 
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Medtronic
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