Medtronic plc said the current supply constraint in diabetes products will continue to impact growth in the market until later this fiscal year as the Dublin-based medical device company announced earnings near the low end of guidance.

Demand for the company's new, highly accurate generation of sensors, such as the MiniMed 640G and MiniMed 670G, and the Guardian Sensor 3 in the U.S. is so great that it has exceeded Medtronic's production supply, Omar Ishrak, chairman and CEO, said on the company's fiscal first-quarter earnings call. These sensors are part of Medtronic's insulin pump technology business.

Revenue growth in diabetes products for the fiscal first quarter declined 1%.

"Historical growth before the recent market disruption was typically in the high-single digits to low-double digits," Karen Parkhill, CFO and executive vice president, said on the call. With the impact of the temporary supply constraint, Medtronic now expects the diabetes market to grow in the range of 1% to 4% this fiscal year with improvement in the second half, Parkhill added.

The company is confident in its manufacturing process regarding the sensors, and the issue is with acquiring capital equipment approved by the U.S. Food and Drug Administration, executives reported.

In addition to the supply problem in the diabetes market, Medtronic's CEO also said the company's IT outage in June affected fiscal first-quarter revenue growth. The company experienced a global disruption to an IT system on June 19 that limited Medtronic's ability to process, ship and manufacture globally.

"The independent analysis concluded that the root cause was due to inadvertent human error, which caused the misconfiguration within certain data storage systems that resulted in our IT system becoming inoperable," Ishrak said.

The company reported that the IT issue was not material to fiscal first-quarter revenue or earnings per share, even though the CEO cited the outage as having an impact on fiscal first-quarter revenue growth.

Medtronic's fiscal first-quarter revenue was $7.39 billion, up 3% year over year on a reported basis or 4% on a constant currency basis. The company's revenue came in slightly lower than consensus numbers for the fiscal quarter and near the low end of guidance, which is 4% to 5% constant currency revenue growth, Matthew Taylor, a Barclays analyst, said in an Aug. 22 note.

"In our view, the expectation for more protracted weakness in diabetes, back-end loading of guidance and implied lowering of core revenue growth could pressure shares," Taylor reported.

Taylor has an "overweight/neutral" rating for Medtronic, noting the anticipation of improving product cycles for transcatheter aortic valve replacement drug eluting stents and robotics as well as the recovery of the diabetes market can lead to revenue growth improvement in the second half of fiscal year 2018 and fiscal year 2019.