NYSE$MDT

Medtronic PLC · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Medtronic's Q4 2020 financial results were reported, showing a decrease in revenue and EPS due to the impact of the COVID-19 pandemic. The company announced a dividend increase, reflecting its strong financial position.

Medtronic reported a 26% decrease in Q4 revenue to $6.0 billion, with GAAP EPS at $0.48 and non-GAAP EPS at $0.58. The results were in line with previous updates, reflecting the impact of deferred procedures due to the COVID-19 pandemic. Despite the challenges, the company increased its dividend, showcasing its financial strength.

  • Q4 revenue decreased by 26% as reported and 25% organically, reaching $6.0 billion.
  • GAAP diluted EPS was $0.48, while non-GAAP diluted EPS was $0.58.
  • The company's financial results aligned with the update provided on April 21, reflecting the broad impact on the MedTech industry.
  • Medtronic increased its quarterly dividend to $0.58, marking the 43rd consecutive year of dividend increases.

Headline financials

Total Revenue

$6B

Previous: $8.15B-26.4%
EPS (adj)

$0.58

Previous: $1.54-62.3%
Organic Revenue Growth

-25.0%

No prior period
Capital Expenditures

$336M

Previous: $335M+0.3%
Free Cash Flow

$6.02B

Previous: $1.75B+243.7%
Net Income

$640M

Previous: $1.17B-45.4%
Operating Income

$317M

Previous: $1.95B-83.7%
Gross Profit

$3.73B

Previous: $5.66B-34.1%
Cash & Equivalents

$4.14B

Previous: $4.39B-5.8%
Total Assets

$90.7B

Previous: $89.7B+1.1%
Stock-Based Comp

$62M

Previous: $62M+0.0%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$6B

Q4 2020-26.4%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Medtronic · $5.15B total across 8 segments · Q4 2020

  • Surgical & Endoscopy
    $1.17B-23.6%
  • Cardiac Rhythm & Heart Failure
    $940M-39.5%
  • Acute Care & Monitoring
    $766M+5.5%
  • Coronary & Peripheral Vascular
    $697M-29.9%
  • Cranial & Spinal Technologies
    $615M-26.0%
  • Diabetes
    $570M-8.9%
  • Other
    $198M-42.1%
  • Specialty Therapies
    $197M-43.9%

Forward guidance

Due to the uncertainty caused by the COVID-19 pandemic, Medtronic is not providing formal annual or quarterly financial guidance at this time.

Tailwinds

  • Medtronic is in a strong financial position.
  • The company has ample liquidity.
  • Medtronic has no public debt maturing until March 2021.
  • The company announced a significant increase in its dividend.
  • Medtronic is investing to drive a strong recovery and consistent, long-term growth.

Headwinds

  • Uncertainty on near-term financial results caused by the COVID-19 pandemic.
  • COVID-19 has had and is expected to continue to have an impact on business, operations and production.
  • Demand for offerings is affected by COVID-19.
  • Employees, medical professionals and healthcare systems are impacted.
  • Communities in which Medtronic operates are affected.

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 Q4 2020

Historical avgQ4 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

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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