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Jul 30, 2021

Medtronic Q1 2022 Earnings Report

Reported strong financial performance in Q1 2022, driven by continued procedure volume recovery and share gains from new product launches.

Key Takeaways

Medtronic reported a strong start to fiscal year 2022, with Q1 revenue of $8.0 billion, a 23% increase as reported and 19% on an organic basis. GAAP diluted EPS was $0.56, while non-GAAP diluted EPS was $1.41. The company reiterated its FY22 revenue guidance and raised the lower end of its EPS guidance.

Revenue of $8.0 Billion Increased 23% Reported and 19% Organic

GAAP Diluted EPS of $0.56

Non-GAAP Diluted EPS of $1.41

Company Reiterates FY22 Revenue Guidance; Raises Lower End of FY22 EPS Guidance by 5 cents

Total Revenue
$7.99B
Previous year: $6.51B
+22.7%
EPS
$1.41
Previous year: $0.62
+127.4%
Total Organic Revenue Growth
19%
Gross Profit
$5.39B
Previous year: $4B
+34.7%
Cash and Equivalents
$3B
Previous year: $6.5B
-53.8%
Free Cash Flow
$914M
Previous year: -$56M
-1732.1%
Total Assets
$91.8B
Previous year: $93.9B
-2.2%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

The company reiterated its revenue growth guidance and raised the lower end of its EPS guidance range for fiscal year 2022. The company continues to expect revenue growth in its fiscal year 2022 to approximate 9% on an organic basis. The company increased its fiscal year 2022 diluted non-GAAP EPS guidance from the prior range of $5.60 to $5.75 to the new range of $5.65 to $5.75.

Positive Outlook

  • Revenue growth in fiscal year 2022 to approximate 9% on an organic basis.
  • If current exchange rates hold, revenue growth in fiscal year 2022 would be positively affected by approximately $100 to $200 million.
  • Increased fiscal year 2022 diluted non-GAAP EPS guidance from the prior range of $5.60 to $5.75 to the new range of $5.65 to $5.75.
  • Positive impact from foreign currency exchange versus a 10 to 15 cent positive impact previously.
  • Focused on accelerating long-term revenue growth and generating strong returns for shareholders.

Challenges Ahead

  • No specific negatives were mentioned in the provided text, only reiterating and increasing guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income