NYSE$MDT

Medtronic PLC · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Medtronic's Q1 2023 financial results were reported, with revenue exceeding guidance despite supply chain challenges. Notable strength was seen in Pacing, Cardiac Surgery, Core Spine in the U.S., and Diabetes in Europe.

Medtronic's Q1 2023 revenue reached $7.371 billion, a decrease of 8% as reported and 4% organically. GAAP diluted EPS increased by 25% to $0.70, while non-GAAP diluted EPS decreased by 17% to $1.13. The company reiterated its FY23 revenue and EPS guidance.

  • GAAP diluted EPS of $0.70 increased 25%; non-GAAP diluted EPS of $1.13 decreased 17%, in-line with expectations
  • Revenue of $7.4 billion decreased 8% as reported and 4% organic, ahead of expectations
  • Company reiterates FY23 revenue and EPS guidance
  • Supply chain is improving and confident in ability to accelerate growth.

Headline financials

Total Revenue

$7.37B

Previous: $7.99B-7.7%
EPS (adj)

$1.13

Previous: $1.41-19.9%
Organic Revenue Growth

-4.0%

Previous: 19.0%-121.1%
Capital Expenditures

-$426M

Previous: -$378M-12.7%
Free Cash Flow

$657M

Previous: $914M-28.1%
Net Income

$929M

Previous: $763M+21.8%
Operating Income

$1.13B

Previous: $859M+31.0%
Gross Profit

$4.86B

Previous: $5.39B-9.9%
Cash & Equivalents

$2.14B

Previous: $3B-28.8%
Total Assets

$89.9B

Previous: $91.8B-2.1%
Stock-Based Comp

$62M

Previous: $69M-10.1%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$7.37B

Q1 2023-7.7%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Medtronic · $7.37B total across 9 segments · Q1 2023

  • Cardiac Rhythm & Heart Failure
    $1.39B-6.1%
  • Surgical & Endoscopy
    $1.34B-13.9%
  • Cranial & Spinal Technologies
    $1.04B-7.1%
  • Structural Heart & Aortic
    $741M-5.8%
  • Specialty Therapies
    $667M+4.1%
  • Other
    $664M-13.5%
  • Coronary & Peripheral Vascular
    $579M-6.6%
  • Diabetes
    $541M-5.4%
  • Neuromodulation
    $405M-8.0%

Forward guidance

Medtronic reiterated its revenue growth and EPS guidance ranges for fiscal year 2023. The company continues to expect organic revenue growth in the range of 4% to 5%.

Tailwinds

  • Company continues to expect organic revenue growth in its fiscal year 2023 in the range of 4% to 5%.
  • Expect organic revenue growth to improve each quarter
  • Second half of the fiscal year much stronger than the first
  • Focused on identifying ways to offset their impact to our financials
  • Optimistic about our future, as we create markets and realize new opportunities.

Headwinds

  • Fiscal year 2023 revenue growth would be negatively affected by approximately $1.4 billion to $1.5 billion versus the previously stated $1.0 to $1.1 billion impact from foreign currency exchange rates.
  • Company continues to expect fiscal year 2023 diluted non-GAAP EPS in the range of $5.53 to $5.65, including an estimated 17 to 22 cent negative impact from foreign currency.
  • Markets are facing macroeconomic challenges
  • Impact to certain procedure volumes
  • Macroeconomic impacts of inflation and foreign currency translation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-1.4%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+6.2%

Q1 2019

Best reaction

-7.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.8%-2.6%-12.7%
Q2 2026+3.9%+5.1%+2.3%
Q1 2026-3.1%-0.1%+3.0%
Q4 2025-2.2%-6.6%-0.0%
Q3 2025-7.3%-3.1%-1.7%
Q2 2025-4.0%-1.6%-8.7%
Q1 2025+3.2%+4.2%+5.5%
Q4 2024-4.0%-4.4%-4.8%
Q3 2024+1.8%+1.5%-1.2%
Q2 2024+4.3%+5.1%+9.0%
Q1 2024+2.5%+0.7%-1.4%
Q4 2023-6.9%-5.7%-0.0%
Q3 2023+0.4%-1.5%-8.5%
Q2 2023-4.0%-3.9%-6.3%
Q1 2023-4.1%-3.9%-10.2%
Q4 2022-6.1%-5.1%-14.5%
Q3 2022+2.4%+5.2%+5.7%
Q2 2022-2.1%-5.0%-12.0%
Q1 2022+4.7%+4.1%+1.7%
Q4 2021+0.3%-0.8%+2.8%
Q3 2021+2.6%+1.1%+0.7%
Q2 2021+2.1%+3.3%+2.8%
Q1 2021+3.9%+7.7%+1.1%
Q4 2020-3.4%-0.9%-4.3%
Q3 2020-3.0%-3.5%-32.5%
Q2 2020+0.5%-0.4%+2.0%
Q1 2020+3.5%+1.8%+6.6%
Q4 2019+4.8%+2.9%+12.0%
Q3 2019+0.6%+1.6%-0.2%
Q2 2019+2.9%+1.8%-0.5%
Q1 2019+6.2%+6.1%+8.3%
Q4 2018+1.2%+0.2%+1.8%
Q3 2018-3.1%-3.5%-6.2%
Q2 2018+4.4%+5.5%+3.3%
Q1 2018-4.5%-5.3%-4.8%
Q4 2017+0.5%+0.2%+5.3%
Q3 2017+0.9%+2.7%+2.5%
Q2 2017-6.0%-6.3%-11.0%
Q1 2017-0.1%+0.2%+1.2%
Q4 2016-1.4%+1.5%+6.2%
Q3 2016-3.6%
Q2 2016+2.7%
Q1 2016-3.6%
Q4 2015+0.2%
Q3 2015+4.3%
Q2 2015+3.7%
Q1 2015+1.1%
Q4 2014-1.0%
Q3 2014-1.2%
Q2 2014-2.4%
Q1 2014-2.6%
Q4 2013+3.3%
Q3 2013-5.0%
Q2 2013+1.6%
Q1 2013+1.2%
Q4 2012+2.1%
Q3 2012+2.0%
Q2 2012-6.5%
Q1 2012-3.2%
Q4 2011+1.5%
Q3 2011+1.4%
Q2 2010-0.2%
Q1 2010+1.5%
Q4 2010+0.7%
Q3 2009+0.6%

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