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

Total Revenue

$7.76B

Previous: $7.78B-0.2%
EPS (adj)

$1.37

Previous: $1.29+6.2%
Organic Revenue Growth

2.0%

Previous: -1.0%+300.0%
Capital Expenditures

-$979M

Previous: -$978M-0.1%
Free Cash Flow

$4.31B

Previous: $3.52B+22.5%
Net Income

$1.48B

Previous: $1.27B+16.5%
Operating Income

$1.66B

Previous: $1.28B+29.9%
Gross Profit

$5.3B

Previous: $5.15B+2.9%
Cash & Equivalents

$3.48B

Previous: $5.08B-31.5%
Total Assets

$91.8B

Previous: $97.3B-5.6%
Stock-Based Comp

$78M

Previous: $65M+20.0%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$7.76B

Q3 2022-0.2%vs Q3 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Medtronic · $7.76B total across 9 segments · Q3 2022

  • Surgical & Endoscopy
    $1.52B+6.7%
  • Cardiac Rhythm & Heart Failure
    $1.4B+2.3%
  • Cranial & Spinal Technologies
    $1.1B+1.9%
  • Acute Care & Monitoring
    $771M-13.4%
  • Structural Heart & Aortic
    $740M+59.8%
  • Specialty Therapies
    $633M+2.4%
  • Coronary & Peripheral Vascular
    $603M-30.9%
  • Diabetes
    $584M-7.3%
  • Neuromodulation
    $409M-4.0%

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

Historical avgQ3 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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