NYSE$MDT

Medtronic PLC · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Medtronic's Q4 2022 results were impacted by global supply chain issues and China lockdowns, but the company is addressing these challenges and remains focused on innovation-driven growth and shareholder value.

Medtronic reported a 1% decrease in Q4 revenue to $8.1 billion, but a 1% increase on an organic basis. GAAP diluted EPS increased by 10% to $1.10, while non-GAAP diluted EPS increased by 2% to $1.52. The company issued FY23 guidance, expecting organic revenue growth of 4% to 5% and non-GAAP EPS in the range of $5.53 to $5.65.

  • Q4 revenue decreased 1% reported and increased 1% organic
  • Q4 GAAP diluted EPS of $1.10 increased 10%; non-GAAP diluted EPS of $1.52 increased 2%
  • Company issues FY23 guidance
  • Quarterly dividend increased to $0.68, annual $2.72 from prior $2.52

Headline financials

Total Revenue

$8.09B

Previous: $8.19B-1.2%
EPS (adj)

$1.52

Previous: $1.50+1.3%
Capital Expenditures

$389M

Previous: $377M+3.2%
Free Cash Flow

$1.67B

Previous: $1.37B+21.9%
Net Income

$1.49B

Previous: $1.36B+9.6%
Operating Income

$1.67B

Previous: $1.61B+3.9%
Gross Profit

$5.09B

Previous: $5.54B-8.1%
Cash & Equivalents

$3.71B

Previous: $3.59B+3.4%
Total Assets

$91B

Previous: $93.1B-2.3%
Stock-Based Comp

$72M

Previous: $69M+4.3%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$8.09B

Q4 2022-1.2%vs Q4 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Medtronic · $8.09B total across 9 segments · Q4 2022

  • Cardiac Rhythm & Heart Failure
    $1.55B+0.8%
  • Surgical & Endoscopy
    $1.49B-3.3%
  • Cranial & Spinal Technologies
    $1.17B-2.3%
  • Structural Heart & Aortic
    $778M+4.6%
  • Acute Care & Monitoring
    $740M-7.0%
  • Specialty Therapies
    $684M+4.6%
  • Coronary & Peripheral Vascular
    $631M+1.1%
  • Diabetes
    $597M-7.7%
  • Neuromodulation
    $451M+0.4%

Forward guidance

The company expects organic revenue growth in its fiscal year 2023 in the range of 4% to 5%. The company expects fiscal year 2023 non-GAAP EPS in the range of $5.53 to $5.65.

Tailwinds

  • Expect recent and upcoming product launches to make a difference across our businesses this coming fiscal year

Headwinds

  • Supply chain is expected to create near-term pressure.
  • Inflation is expected to create near-term pressure.
  • Foreign exchange are expected to create near-term pressure.
  • Fiscal year 2023 revenue would be negatively affected by approximately $1.0 billion to $1.1 billion due to foreign currency exchange rates
  • Company expects an estimated 20 to 25 cent negative impact from foreign currency translation based on recent foreign currency exchange rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-0.2%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-1.4%

Avg return

30 days after

57%

37 / 65 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
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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