Medtronic reports full year and fourth quarter fiscal 2023 financial results; announces dividend increase.

DUBLIN: Medtronic plc (NYSE:MDT) today announced financial results for its fourth quarter and fiscal year 2023, which ended April 28, 2023.

Fourth Quarter (Q4) Key Highlights

Q4 revenue of $8.5 billion increased 5.6% as reported and organic, ahead of expectations

Q4 GAAP diluted EPS of $0.88 decreased 20%; non-GAAP diluted EPS of $1.57 increased 3% in the quarter, ahead of expectations

Q4 revenue growth acceleration was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions

Strength in international markets in Q4, with high-single digit organic growth in non-U.S. developed markets and low-double digit organic growth in emerging markets

Pipeline momentum in Q4 with CE Mark of the Affera mapping and navigation system and Aurora extravascular ICD, and U.S. FDA approval of the MiniMed 780G system with Guardian 4 sensor

Announced strategic collaboration with NVIDIA to accelerate AI innovation for healthcare

Completed divestiture of Renal Care Solutions business to Mozarc Medical, a joint venture with DaVita

Additional Key Highlights

Dividend increased to $0.69 per share quarterly, annual $2.76 per share; 46th consecutive year of dividend increases

Named one of the 2023 World's Most Ethical Companies(r) by Ethisphere and increased ranking to #2 on DiversityInc's 2023 Top 50 Companies for Diversity

Company issues FY24 guidance

Fourth Quarter (Q4) Financial Results

Medtronic reported Q4 worldwide revenue of $8.544 billion, an increase of 5.6% both as reported and on an organic basis. The company's Q4 organic revenue results reflect strong performances in the Cardiovascular, Medical Surgical, and Neuroscience portfolios, and in Diabetes markets outside the United States. The Q4 organic revenue growth comparison excludes:

a $250 million negative impact from foreign currency translation;

$265 million of revenue from a one-time intellectual property (IP) agreement, which is reported in the Structural Heart & Aortic division in the Cardiovascular Portfolio;

$44 million of current year revenue and $83 million of prior year revenue from the Renal Care Solutions business in the Respiratory, GI, & Renal division in the Medical Surgical Portfolio, which was divested and became part of Mozarc Medical during the quarter; and

$27 million of revenue from the company's first quarter acquisition of Intersect ENT, which is reported in the Specialty Therapies division in the Neuroscience Portfolio.

Medtronic received $300 million in the quarter from an IP agreement with a competitor in the Structural Heart space. Pre-tax income of $35 million was recorded in Certain Litigation Charges, Net, for prior period royalties, with the remaining $265 million recognized as inorganic revenue. The $265 million of inorganic revenue was offset by...