A computer crash that shut down Medtronic Plc’s systems for global ordering, fulfillment and manufacturing for a week last month will crimp quarterly sales at the world’s largest medical technology company, Chief Financial Officer Karen Parkhill said.
Medtronic is still analyzing the issue, which was an internal infrastructure problem, Parkhill said in her first wide-ranging interview since joining Medtronic last summer. While the problem has been fixed and the company is back to its normal operations, it continues to fill back orders, she said.
The delays will push some sales into the next quarter. Medtronic is also dealing with a shortage of blood sugar sensors, partly because of higher-than-expected demand for an artificial pancreas the company has developed. Medtronic is scheduled to report results on Aug. 22.
“We do expect our first-quarter revenue growth on a constant currency basis to be within our guidance of 4 to 5 percent, but at the lower end of that range,” Parkhill said. First-quarter earnings per share should be in the upper end of the company’s high-single-digit range, thanks in part to a tax benefit expected in the quarter, she said.
The CFO said she’s confident that the company will meet its “full fiscal-year guidance of 4 to 5 percent constant-currency revenue growth, and 9 to 10 percent earnings-per-share growth.”
Medtronic stock fell 2.8 percent to $86.06 at 4:17 p.m. in New York, the biggest one-day loss since November. The shares are up 21 percent this year to date compared to a 17 percent gain in the 46-member Bloomberg Intelligence Global Medical Devices & Supplies index.
It’s not the only company to be hit by tech troubles. FedEx Corp. fell the most in two months after the company said its customers are still dealing with the fallout of a cyberattack last month. Medtronic’s computer issue wasn’t a hack, as far as the company knows, but an internal…