Q2FY23 Financial Summary and Strategic Highlights
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Q2FY23 highlights & financial summary following November 22nd earnings report
Key Messages
Earnings delivered despite revenue below expectations: Delivered
revenue of $7.6B and adjusted EPS of $1.30; FX headwinds weighed on
results, contributing over half of the miss vs. consensus
Pace of procedure volume and supply recovery slower than expected in
certain businesses: Certain procedure volumes slower to recover, primarily
in developed markets due to continued healthcare system staffing
challenges; Made meaningful recovery in supply, but some improvements
came later than expected in Q2, delaying expected H2 momentum
Seeing benefit of operating model changes in several businesses:
Despite current operating environment challenges, strong growth in several
businesses where our strategy, operating model, and execution are yielding
solid results: CRM, CST, ENT, and International Diabetes
Reduced H2 guidance, continue to expect organic revenue growth
acceleration: Given slower pace of market and supply recovery combined
with added VBP headwinds, driving expense reductions to help offset lower
revenue and effects of cost inflation
Confidence in path to deliver durable growth and shareholder value:
Remain focused on delivering our pipeline, decisively allocating capital,
improving our operational health, and streamlining the company
Diluted EPS
GAAP
$0.32
Non-GAAP
$1.30
Cash flow from operations YTD
$2.0B
Y/Y %
-67%
-2%
Free cash flow 3 YTD
CC Y/Y %
N/A
-1%
$1.3B
Diabetes
$556M
-5.0% Y/Y Rep
+3.1% Y/Y Org²
Medical Surgical
$2,070M
-10.0% Y/Y Rep
-3.5% Y/Y Org²
-1.3% ex-Vents Y/Y Org²
Revenue by segment
Total MDT
$7,585M
-3.3% Y/Y Rep
+2.2% Y/Y Org
Cardiovascular
$2,773M
-1.9% Y/Y Rep
+4.4% Y/Y Org²
Neuroscience
$2,186M
+2.3% Y/Y Rep
+5.1% Y/Y Org²
1 Data has been intentionally rounded to the nearest million and, therefore, may not sum.
2Figures represent comparison to Q2 FY22 on an organic basis.
3Operating cash flows less property, plant, and equipment additions.
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Investor Meetings | November 2022
MedtronicView entire presentation