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Jul 29, 2022

Medtronic Q1 2023 Earnings Report

Medtronic's Q1 2023 financial results were reported, with revenue exceeding guidance despite supply chain challenges. Notable strength was seen in Pacing, Cardiac Surgery, Core Spine in the U.S., and Diabetes in Europe.

Key Takeaways

Medtronic's Q1 2023 revenue reached $7.371 billion, a decrease of 8% as reported and 4% organically. GAAP diluted EPS increased by 25% to $0.70, while non-GAAP diluted EPS decreased by 17% to $1.13. The company reiterated its FY23 revenue and EPS guidance.

GAAP diluted EPS of $0.70 increased 25%; non-GAAP diluted EPS of $1.13 decreased 17%, in-line with expectations

Revenue of $7.4 billion decreased 8% as reported and 4% organic, ahead of expectations

Company reiterates FY23 revenue and EPS guidance

Supply chain is improving and confident in ability to accelerate growth.

Total Revenue
$7.37B
Previous year: $7.99B
-7.7%
EPS
$1.13
Previous year: $1.41
-19.9%
Total Organic Revenue Growth
-4%
Previous year: 19%
-121.1%
Gross Profit
$4.45B
Previous year: $5.39B
-17.4%
Cash and Equivalents
$2.14B
Previous year: $3B
-28.8%
Free Cash Flow
$657M
Previous year: $914M
-28.1%
Total Assets
$89.9B
Previous year: $91.8B
-2.1%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

Medtronic reiterated its revenue growth and EPS guidance ranges for fiscal year 2023. The company continues to expect organic revenue growth in the range of 4% to 5%.

Positive Outlook

  • Company continues to expect organic revenue growth in its fiscal year 2023 in the range of 4% to 5%.
  • Expect organic revenue growth to improve each quarter
  • Second half of the fiscal year much stronger than the first
  • Focused on identifying ways to offset their impact to our financials
  • Optimistic about our future, as we create markets and realize new opportunities.

Challenges Ahead

  • Fiscal year 2023 revenue growth would be negatively affected by approximately $1.4 billion to $1.5 billion versus the previously stated $1.0 to $1.1 billion impact from foreign currency exchange rates.
  • Company continues to expect fiscal year 2023 diluted non-GAAP EPS in the range of $5.53 to $5.65, including an estimated 17 to 22 cent negative impact from foreign currency.
  • Markets are facing macroeconomic challenges
  • Impact to certain procedure volumes
  • Macroeconomic impacts of inflation and foreign currency translation

Revenue & Expenses

Visualization of income flow from segment revenue to net income