NYSE$MDT
Medtronic PLC · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Medtronic's financial performance remained stable with slight organic revenue growth, amidst COVID-19 headwinds.
Medtronic reported flat revenue year-over-year at $7.8 billion, with 2% organic growth. GAAP diluted EPS grew 17% to $1.10, while non-GAAP diluted EPS increased 6% to $1.37. The company issued Q4 revenue and EPS guidance, expecting healthcare procedures to reaccelerate post-Omicron.
- Revenue of $7.8 billion was flat year-over-year as reported and grew 2% organic.
- GAAP diluted EPS of $1.10 grew 17%; non-GAAP diluted EPS of $1.37 grew 6%.
- Cardiovascular revenue increased 3% organically, driven by growth in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic divisions.
- Neuroscience revenue increased 2% organically, with growth in Cranial & Spinal Technologies and Specialty Therapies.
Headline financials
Revenue & EPS history
Medtronic · Revenue · Quarterly
$7.76B
Revenue by segment
Medtronic · $7.76B total across 9 segments · Q3 2022
- Surgical & Endoscopy$1.52B+6.7%19.6%
- Cardiac Rhythm & Heart Failure$1.4B+2.3%18.1%
- Cranial & Spinal Technologies$1.1B+1.9%14.2%
- Acute Care & Monitoring$771M-13.4%9.9%
- Structural Heart & Aortic$740M+59.8%9.5%
- Specialty Therapies$633M+2.4%8.2%
- Coronary & Peripheral Vascular$603M-30.9%7.8%
- Diabetes$584M-7.3%7.5%
- Neuromodulation$409M-4.0%5.3%
Forward guidance
The company expects fourth quarter organic revenue growth of approximately 5.5% and non-GAAP EPS in the range of $1.56 to $1.58.
Tailwinds
- Expects fourth quarter organic revenue growth of approximately 5.5%.
- Fourth quarter non-GAAP EPS is expected to be in the range of $1.56 to $1.58.
- Procedure volumes are expected to improve through March and April.
- Expects procedure volumes in most markets to be back to pre-COVID levels by the end of the fourth quarter.
- Adjusted EPS was in line with guidance and ahead of consensus.
Headwinds
- Fourth quarter revenue would be negatively affected by approximately $185 million due to foreign currency exchange rates.
- The impact of the COVID-19 resurgence on healthcare procedure volumes peaked in January.
- Revenue fell short of expectations due to the pandemic-related challenges.
- Healthcare system labor shortages impacted medical device procedure volumes.
- Diabetes revenue declined 5% organically, with high-teens declines in the U.S.
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 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
| 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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