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Jan 28, 2022
Medtronic Q3 2022 Earnings Report
Medtronic's financial performance remained stable with slight organic revenue growth, amidst COVID-19 headwinds.
Key Takeaways
Medtronic reported flat revenue year-over-year at $7.8 billion, with 2% organic growth. GAAP diluted EPS grew 17% to $1.10, while non-GAAP diluted EPS increased 6% to $1.37. The company issued Q4 revenue and EPS guidance, expecting healthcare procedures to reaccelerate post-Omicron.
Revenue of $7.8 billion was flat year-over-year as reported and grew 2% organic.
GAAP diluted EPS of $1.10 grew 17%; non-GAAP diluted EPS of $1.37 grew 6%.
Cardiovascular revenue increased 3% organically, driven by growth in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic divisions.
Neuroscience revenue increased 2% organically, with growth in Cranial & Spinal Technologies and Specialty Therapies.
Medtronic
Medtronic
Medtronic Revenue by Segment
Medtronic Revenue by Geographic Location
Revenue by Segment
Cardiac Rhythm & HF Revenue
CapyFin.comStructural Heart & Aortic Revenue
CapyFin.comCoronary & Peripheral Vascular Revenue
CapyFin.comCranial & Spinal Technologies Revenue
CapyFin.comSpecialty Therapies Revenue
CapyFin.comNeuromodulation Revenue
CapyFin.comSurgical & Endoscopy Revenue
CapyFin.comAcute Care & Monitoring Revenue
CapyFin.comDiabetes Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
The company expects fourth quarter organic revenue growth of approximately 5.5% and non-GAAP EPS in the range of $1.56 to $1.58.
Positive Outlook
- Expects fourth quarter organic revenue growth of approximately 5.5%.
- Fourth quarter non-GAAP EPS is expected to be in the range of $1.56 to $1.58.
- Procedure volumes are expected to improve through March and April.
- Expects procedure volumes in most markets to be back to pre-COVID levels by the end of the fourth quarter.
- Adjusted EPS was in line with guidance and ahead of consensus.
Challenges Ahead
- Fourth quarter revenue would be negatively affected by approximately $185 million due to foreign currency exchange rates.
- The impact of the COVID-19 resurgence on healthcare procedure volumes peaked in January.
- Revenue fell short of expectations due to the pandemic-related challenges.
- Healthcare system labor shortages impacted medical device procedure volumes.
- Diabetes revenue declined 5% organically, with high-teens declines in the U.S.
Revenue & Expenses
Visualization of income flow from segment revenue to net income