NYSE$MDT

Medtronic PLC · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Medtronic's financial performance reflected focused execution of strategy and strong underlying health, despite market challenges.

Medtronic reported a 3% increase in revenue to $7.8 billion, with organic revenue growth of 2%. GAAP diluted EPS increased by 169% to $0.97, while non-GAAP diluted EPS increased by 29% to $1.32. The company is reiterating its full year EPS guidance.

  • Revenue increased 3% reported and 2% organic.
  • GAAP diluted EPS of $0.97; non-GAAP diluted EPS of $1.32.
  • Company continued to launch new products and win share.
  • Market procedure volumes were impacted by COVID-19 resurgence.

Headline financials

Total Revenue

$7.85B

Previous: $7.65B+2.6%
EPS (adj)

$1.32

Previous: $1.02+29.4%
Organic Revenue Growth

2.0%

Previous: -1.5%+233.3%
Capital Expenditures

-$649M

Previous: -$615M-5.5%
Free Cash Flow

$2.41B

Previous: $1.52B+58.3%
Net Income

$1.31B

Previous: $489M+168.1%
Operating Income

$1.56B

Previous: $930M+68.1%
Gross Profit

$5.35B

Previous: $4.94B+8.3%
Cash & Equivalents

$2.9B

Previous: $6.42B-54.8%
Total Assets

$91.8B

Previous: $95.9B-4.3%
Stock-Based Comp

$140M

Previous: $140M+0.0%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$7.85B

Q2 2022+2.6%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Medtronic · $7.85B total across 9 segments · Q2 2022

  • Surgical & Endoscopy
    $1.5B+7.5%
  • Cardiac Rhythm & Heart Failure
    $1.47B+3.2%
  • Cranial & Spinal Technologies
    $1.07B-0.4%
  • Acute Care & Monitoring
    $802M-10.2%
  • Structural Heart & Aortic
    $750M
  • Specialty Therapies
    $634M+9.1%
  • Coronary & Peripheral Vascular
    $606M-27.1%
  • Diabetes
    $585M+1.9%
  • Neuromodulation
    $435M+5.8%

Forward guidance

The company now expects fiscal year 2022 revenue growth of 7-8% on an organic basis versus the prior expectation of approximately 9%. The company reiterated its fiscal year 2022 diluted non-GAAP EPS guidance range of $5.65 to $5.75.

Tailwinds

  • Focused execution of strategy
  • Strong underlying health of the business
  • Continued advancement of pipeline
  • Launch of new products
  • Grew share in the majority of businesses

Headwinds

  • Greater-than-expected market impact of the pandemic
  • Healthcare system staffing challenges
  • Expected to continue into the second half of the fiscal year
  • Affected quarterly revenue growth
  • Markets to continue to be affected by the pandemic in the second half of our fiscal year

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.1%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-1.4%

Avg return

30 days after

58%

38 / 66 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
Q4 2026+5.3%+9.4%
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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