NYSE$MDT
Medtronic PLC · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Medtronic's financial performance was reported for Q3 2020, with revenue and EPS increases, along with raised full-year EPS guidance.
Medtronic reported a 2.3% increase in revenue to $7.7 billion and a 51% increase in GAAP diluted EPS to $1.42. The company also raised its full-year EPS guidance.
- Revenue increased by 2.3% as reported and 2.6% organically, reaching $7.7 billion.
- GAAP diluted EPS rose by 51% to $1.42, while non-GAAP diluted EPS increased by 12% to $1.44.
- Cash flow from operations grew by 17% to $2.4 billion, and free cash flow increased by 21% to $2.1 billion.
- The company raised its full-year EPS guidance, indicating positive expectations for future performance.
Headline financials
Revenue & EPS history
Medtronic · Revenue · Quarterly
$7.72B
Revenue by segment
Medtronic · $6.7B total across 8 segments · Q3 2020
- Surgical & Endoscopy$1.47B+2.8%22.0%
- Cardiac Rhythm & Heart Failure$1.39B-0.3%20.8%
- Coronary & Peripheral Vascular$948M+3.8%14.1%
- Cranial & Spinal Technologies$795M+8.6%11.9%
- Other$702M+1.7%10.5%
- Diabetes$610M+0.0%9.1%
- Structural Heart & Aortic$478M+0.4%7.1%
- Neuromodulation$303M-3.5%4.5%
Forward guidance
The company issued fourth quarter revenue growth guidance and raised its full year EPS guidance for fiscal year 2020.The company indicated that it is comfortable with current Street consensus calling for fourth quarter organic revenue growth of approximately 4.5 percent and EPS of $1.64, excluding any impact from COVID-19.
Tailwinds
- Company is comfortable with current Street consensus calling for fourth quarter organic revenue growth of approximately 4.5 percent.
- Company is comfortable with current Street consensus calling for EPS of $1.64, excluding any impact from COVID-19.
- Company increased its fiscal year 2020 diluted non-GAAP EPS guidance from the prior range of $5.57 to $5.63 to a new range of $5.63 to $5.65.
- Implies fourth quarter diluted non-GAAP EPS in the range of $1.62 to $1.64.
- Top-line growth acceleration is on track as we begin to realize the benefits of new product launches and put the challenges of the third quarter behind us.
Headwinds
- Fourth quarter revenue growth would be negatively affected by 0.8 to 1.4 percent if current exchange rates hold.
- Includes an estimated 7 cent negative impact from foreign exchange based on current rates and excluding any impact from COVID-19.
- Includes an estimated 3 cent negative impact from foreign exchange based on current rates and excluding any impact from COVID-19
- COVID-19 is expected to negatively affect the company’s fourth quarter financial results
- The duration and magnitude of the impact from COVID-19 are difficult to quantify at this time.
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 Q3 2020
-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
| Quarter | Report date | Reaction (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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