NYSE$MDT

Medtronic PLC · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Medtronic's Q3 2023 financial results were reported, demonstrating top and bottom line performance ahead of expectations, driven by strength in Cardiovascular and Neuroscience portfolios.

Medtronic's Q3 2023 revenue reached $7.7 billion, remaining flat as reported but increasing by 4.1% organically, surpassing expectations. GAAP diluted EPS was $0.92, a 16% decrease, while non-GAAP diluted EPS was $1.30, a 4% decrease, also exceeding expectations. The company has raised its FY23 organic revenue growth and EPS outlook.

  • Revenue of $7.7 billion was flat as reported and increased 4.1% organic, ahead of expectations.
  • GAAP diluted EPS of $0.92 decreased 16%; non-GAAP diluted EPS of $1.30 decreased 4%, ahead of expectations.
  • Cardiovascular and Neuroscience portfolios had strong, high-single digit organic growth.
  • Company increases FY23 organic revenue growth and EPS outlook

Headline financials

Total Revenue

$7.73B

Previous: $7.76B-0.5%
EPS (adj)

$1.30

Previous: $1.37-5.1%
Organic Revenue Growth

4.1%

Previous: 2.0%+105.0%
Capital Expenditures

-$1.08B

Previous: -$979M-10.4%
Free Cash Flow

$2.5B

Previous: $4.31B-42.0%
Net Income

$1.22B

Previous: $1.48B-17.4%
Operating Income

$1.39B

Previous: $1.66B-16.1%
Gross Profit

$5.04B

Previous: $5.3B-5.0%
Cash & Equivalents

$4.52B

Previous: $3.48B+30.0%
Total Assets

$94.1B

Previous: $91.8B+2.5%
Stock-Based Comp

$81M

Previous: $78M+3.8%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$7.73B

Q3 2023-0.5%vs Q3 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Medtronic · $7.73B total across 9 segments · Q3 2023

  • Cardiac Rhythm & Heart Failure
    $1.43B+2.1%
  • Surgical & Endoscopy
    $1.43B-6.2%
  • Cranial & Spinal Technologies
    $1.13B+2.4%
  • Structural Heart & Aortic
    $760M+2.7%
  • Acute Care & Monitoring
    $712M-7.7%
  • Specialty Therapies
    $699M+10.4%
  • Coronary & Peripheral Vascular
    $581M-3.6%
  • Diabetes
    $570M-2.4%
  • Neuromodulation
    $420M+2.7%

Forward guidance

The company expects fourth quarter organic revenue growth of 4.5% to 5.0% and increased the lower end of its fiscal year 2023 diluted non-GAAP EPS guidance from the prior range of $5.25 to $5.30 to the new range of $5.28 to $5.30.

Tailwinds

  • Expects fourth quarter organic revenue growth of 4.5% to 5.0%.
  • Raises company’s full fiscal year organic growth outlook.
  • Increased the lower end of its fiscal year 2023 diluted non-GAAP EPS guidance to $5.28 to $5.30.
  • Focused on delivering durable topline growth.
  • Committed to continued investment in our growth drivers to ensure long-term value creation.

Headwinds

  • Fourth quarter revenue would be unfavorably affected by approximately $165 million to $215 million due to foreign currency exchange rates.
  • Fiscal year 2023 diluted non-GAAP EPS guidance includes an estimated 21 cent unfavorable impact from foreign currency.
  • Navigating through macro headwinds from foreign currency.
  • Navigating through macro headwinds from inflation.
  • Procedure volumes remaining a little softer in a few markets and volume-based procurement in China.

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 2023

Historical avgQ3 2023

-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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