•
Oct 29, 2021

Medtronic Q2 2022 Earnings Report

Medtronic's financial performance reflected focused execution of strategy and strong underlying health, despite market challenges.

Key Takeaways

Medtronic reported a 3% increase in revenue to $7.8 billion, with organic revenue growth of 2%. GAAP diluted EPS increased by 169% to $0.97, while non-GAAP diluted EPS increased by 29% to $1.32. The company is reiterating its full year EPS guidance.

Revenue increased 3% reported and 2% organic.

GAAP diluted EPS of $0.97; non-GAAP diluted EPS of $1.32.

Company continued to launch new products and win share.

Market procedure volumes were impacted by COVID-19 resurgence.

Total Revenue
$7.85B
Previous year: $7.65B
+2.6%
EPS
$1.32
Previous year: $1.02
+29.4%
Total Organic Revenue Growth
2%
Previous year: -1.5%
-233.3%
Gross Profit
$5.35B
Previous year: $4.94B
+8.3%
Cash and Equivalents
$2.9B
Previous year: $6.42B
-54.8%
Free Cash Flow
$1.5B
Previous year: $1.58B
-5.2%
Total Assets
$91.8B
Previous year: $95.9B
-4.3%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

The company now expects fiscal year 2022 revenue growth of 7-8% on an organic basis versus the prior expectation of approximately 9%. The company reiterated its fiscal year 2022 diluted non-GAAP EPS guidance range of $5.65 to $5.75.

Positive Outlook

  • Focused execution of strategy
  • Strong underlying health of the business
  • Continued advancement of pipeline
  • Launch of new products
  • Grew share in the majority of businesses

Challenges Ahead

  • Greater-than-expected market impact of the pandemic
  • Healthcare system staffing challenges
  • Expected to continue into the second half of the fiscal year
  • Affected quarterly revenue growth
  • Markets to continue to be affected by the pandemic in the second half of our fiscal year

Revenue & Expenses

Visualization of income flow from segment revenue to net income