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Apr 24, 2020
Medtronic Q4 2020 Earnings Report
Medtronic's Q4 2020 financial results were reported, showing a decrease in revenue and EPS due to the impact of the COVID-19 pandemic. The company announced a dividend increase, reflecting its strong financial position.
Key Takeaways
Medtronic reported a 26% decrease in Q4 revenue to $6.0 billion, with GAAP EPS at $0.48 and non-GAAP EPS at $0.58. The results were in line with previous updates, reflecting the impact of deferred procedures due to the COVID-19 pandemic. Despite the challenges, the company increased its dividend, showcasing its financial strength.
Q4 revenue decreased by 26% as reported and 25% organically, reaching $6.0 billion.
GAAP diluted EPS was $0.48, while non-GAAP diluted EPS was $0.58.
The company's financial results aligned with the update provided on April 21, reflecting the broad impact on the MedTech industry.
Medtronic increased its quarterly dividend to $0.58, marking the 43rd consecutive year of dividend increases.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Due to the uncertainty caused by the COVID-19 pandemic, Medtronic is not providing formal annual or quarterly financial guidance at this time.
Positive Outlook
- Medtronic is in a strong financial position.
- The company has ample liquidity.
- Medtronic has no public debt maturing until March 2021.
- The company announced a significant increase in its dividend.
- Medtronic is investing to drive a strong recovery and consistent, long-term growth.
Challenges Ahead
- Uncertainty on near-term financial results caused by the COVID-19 pandemic.
- COVID-19 has had and is expected to continue to have an impact on business, operations and production.
- Demand for offerings is affected by COVID-19.
- Employees, medical professionals and healthcare systems are impacted.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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