Shares of Medtronic PLC dropped 3.2% in premarket trading Thursday, after the medical technology company missed fiscal fourth-quarter profit and sales expectations and provided a downbeat earnings outlook, citing pressure from inflation, supply chain constraints and COVID-19 controls in China. Net income rose to $1.49 billion, or $1.10 a share, from $1.36 billion, or $1.00 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.52 missed the FactSet consensus of $1.56. Sales fell 1.2% to $8.09 billion, below the FactSet consensus of $8.43 billion. For fiscal 2023, the company expects adjusted EPS of $5.53 to $5.65, below the FactSet consensus of $5.79, with Chief Financial Officer Karen Parkhill saying "supply chain, inflation and foreign exchange" expected to create near-term pressure. Separately, the company raised its quarterly dividend by 7.9% to 68 cents a share from 63 cents, with the new dividend payable July 15 to shareholders of record on June 24. The company also announced it was working with DaVita Inc. /zigman2/quotes/204229673/composite DVA -0.55% to form a new independent kidney care medical device company, co-owned by both companies. Medtronic's stock has gained 2.0% year to date through Wednesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +3.06% has lost 16.5%.