NYSE$MDT

Medtronic PLC · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Medtronic's Q4 2023 earnings exceeded expectations with broad-based strength across the company, driven by procedure volume recovery, supply improvements, and innovative product introductions.

Medtronic reported a strong finish to fiscal year 2023, with Q4 revenue of $8.5 billion, a 5.6% increase as reported and organic. GAAP diluted EPS was $0.88, a 20% decrease, while non-GAAP diluted EPS was $1.57, a 3% increase. The company issued FY24 guidance, projecting organic revenue growth in the range of 4.0% to 4.5% and non-GAAP EPS in the range of $5.00 to $5.10.

  • Q4 revenue of $8.5 billion increased 5.6% as reported and organic, ahead of expectations.
  • Q4 GAAP diluted EPS of $0.88 decreased 20%; non-GAAP diluted EPS of $1.57 increased 3% in the quarter, ahead of expectations.
  • Q4 revenue growth acceleration was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions.
  • Strength in international markets in Q4, with high-single digit organic growth in non-U.S. developed markets and low-double digit organic growth in emerging markets.

Headline financials

Total Revenue

$8.54B

Previous: $8.09B+5.6%
EPS (adj)

$1.57

Previous: $1.52+3.3%
Capital Expenditures

$378M

Previous: $389M-2.8%
Free Cash Flow

$2.08B

Previous: $1.67B+24.8%
Net Income

$1.18B

Previous: $1.49B-21.0%
Operating Income

$1.57B

Previous: $1.67B-6.3%
Gross Profit

$5.56B

Previous: $5.09B+9.3%
Cash & Equivalents

$1.54B

Previous: $3.71B-58.5%
Total Assets

$90.9B

Previous: $91B-0.0%
Stock-Based Comp

$75M

Previous: $72M+4.2%

Revenue & EPS history

Medtronic · Revenue · Quarterly

$8.54B

Q4 2023+5.6%vs Q4 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Medtronic · $8.55B total across 9 segments · Q4 2023

  • Cardiac Rhythm & Heart Failure
    $1.58B+1.8%
  • Surgical & Endoscopy
    $1.5B+0.7%
  • Cranial & Spinal Technologies
    $1.2B+2.8%
  • Structural Heart & Aortic
    $1.11B+42.0%
  • Specialty Therapies
    $763M+11.5%
  • Acute Care & Monitoring
    $723M-2.3%
  • Coronary & Peripheral Vascular
    $631M+0.0%
  • Diabetes
    $595M-0.3%
  • Neuromodulation
    $449M-0.4%

Forward guidance

Medtronic is guiding to fiscal year 2024 organic revenue growth in the range of 4.0% to 4.5%, which excludes the impact of foreign currency and revenue related to certain businesses that will be reported as Other going forward. If foreign currency exchange rates as of the beginning of May hold, fiscal year 2024 revenue would be positively affected by approximately $110 million to $210 million from foreign currency. The company is guiding to fiscal year 2024 non-GAAP EPS in the range of $5.00 to $5.10, including an estimated 6% unfavorable impact from foreign currency exchange rates at the beginning of May.

Tailwinds

  • Procedure recovery in many markets
  • Improving product availability
  • Strong competitive positions across businesses
  • Many new, innovative products coming to market
  • Taking measures to reduce costs across the company

Headwinds

  • Impact from macro factors like inflation
  • Currency impact to earnings
  • Estimated 6% unfavorable impact from foreign currency exchange rates at the beginning of May.
  • Excludes the impact of foreign currency
  • Excludes revenue related to certain businesses that will be reported as Other going forward.

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 2023

Historical avgQ4 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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