Medtronic (MDT.US) Reports 8% YoY Revenue Decline in Q1 but Reaffirms Full-Year Guidance

Medtronic (MDT.US) Reports Q1 FY2023 Earnings ResultsAccording to the Smart Wealth APP, before the U.S. stock market on August 23, Medtronic (MDT.US) announced its financial results for the first quarter of fiscal year 2023. The earnings report showed that the company's Q1 revenue was $7.371 billion, a year-over-year decrease of 8%, or a 4% decrease on an organic basis; net profit was $929 million, a year-over-year increase of 22%; diluted earnings per share were $0.70, a year-over-year increase of 25%.

Net profit under Non-GAAP was $1.502 billion, a year-on-year decrease of 18%; diluted earnings per share were $1.13, a year-on-year decrease of 17%.

By region, revenue in the U.S. was $3.766 billion, accounting for 51%, a year-over-year decrease of 8%, or 9% on an organic basis; revenue in developed markets outside the U.S. was $2.328 billion, accounting for 32%, a year-over-year decrease of 10%, but an increase of 2% on an organic basis; revenue in emerging markets was $1.276 billion, accounting for 17%, a year-over-year decrease of 1%, but an increase of 2% on an organic basis.

By business division, the company's cardiovascular portfolio revenue was $2.713 billion, a year-on-year decrease of 6%, or a 1% decrease on an organic basis; the medical surgical portfolio revenue was $2.001 billion, a year-on-year decrease of 14%, or a 9% decrease on an organic basis; the neuroscience portfolio revenue was $2.115 billion, a year-on-year decrease of 4%, or a 2% decrease on an organic basis; the diabetes group revenue was $541 million, a year-on-year decrease of 5%, or remained flat on an organic basis.

The company reiterated its revenue growth and earnings per share guidance for the fiscal year 2023: organic growth in revenue for the fiscal year 2023 is expected to be between 4% and 5%. If recent foreign exchange rates remain unchanged, the revenue for the fiscal year 2023 will be negatively impacted by approximately $1.4 billion to $1.5 billion. The company expects Non-GAAP earnings per share for the fiscal year 2023 to be between $5.53 and $5.65, including an estimated foreign exchange negative impact of 17 to 22 cents.