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Apr 29, 2022

Medtronic Q4 2022 Earnings Report

Medtronic's Q4 2022 results were impacted by global supply chain issues and China lockdowns, but the company is addressing these challenges and remains focused on innovation-driven growth and shareholder value.

Key Takeaways

Medtronic reported a 1% decrease in Q4 revenue to $8.1 billion, but a 1% increase on an organic basis. GAAP diluted EPS increased by 10% to $1.10, while non-GAAP diluted EPS increased by 2% to $1.52. The company issued FY23 guidance, expecting organic revenue growth of 4% to 5% and non-GAAP EPS in the range of $5.53 to $5.65.

Q4 revenue decreased 1% reported and increased 1% organic

Q4 GAAP diluted EPS of $1.10 increased 10%; non-GAAP diluted EPS of $1.52 increased 2%

Company issues FY23 guidance

Quarterly dividend increased to $0.68, annual $2.72 from prior $2.52

Total Revenue
$8.09B
Previous year: $8.19B
-1.2%
EPS
$1.52
Previous year: $1.5
+1.3%
Gross Profit
$5.09B
Previous year: $5.54B
-8.1%
Cash and Equivalents
$3.71B
Previous year: $3.59B
+3.4%
Free Cash Flow
$1.67B
Previous year: $1.37B
+21.9%
Total Assets
$91B
Previous year: $93.1B
-2.3%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

The company expects organic revenue growth in its fiscal year 2023 in the range of 4% to 5%. The company expects fiscal year 2023 non-GAAP EPS in the range of $5.53 to $5.65.

Positive Outlook

  • Expect recent and upcoming product launches to make a difference across our businesses this coming fiscal year

Challenges Ahead

  • Supply chain is expected to create near-term pressure.
  • Inflation is expected to create near-term pressure.
  • Foreign exchange are expected to create near-term pressure.
  • Fiscal year 2023 revenue would be negatively affected by approximately $1.0 billion to $1.1 billion due to foreign currency exchange rates
  • Company expects an estimated 20 to 25 cent negative impact from foreign currency translation based on recent foreign currency exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income