Medtronic plc (MDT) said global supply chain and COVID-19 controls in China created acute impacts to the company's results in the fourth quarter. Looking forward, the company expects recent and upcoming product launches to make a difference across its businesses in the coming fiscal year.
Medtronic expects fiscal 2023 non-GAAP EPS in the range of $5.53 to $5.65. Organic revenue growth is projected in the range of 4% to 5%. The company noted that, if recent foreign currency exchange rates hold, fiscal 2023 revenue would be negatively affected by approximately $1.0 billion to $1.1 billion. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.82. Analysts' estimates typically exclude special items.
Fourth quarter non-GAAP was $1.52, up 2% from prior year. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.56, for the quarter.
The company's earnings totaled $1.49 billion, or $1.10 per share compared with $1.36 billion, or $1.00 per share, last year.
Worldwide revenue was $8.09 billion, a decrease of 1% as reported and an increase of 1% on an organic basis. Analysts on average had estimated $8.42 billion in revenue.
The company announced that effective May 25, 2022, the board approved an increase in cash dividend for the first quarter of fiscal year 2023, raising the quarterly amount to $0.68 per ordinary share. This would translate into an annual amount of $2.72 per ordinary share, an 8% increase from the prior $2.52.
Separately, Medtronic plc and DaVita Inc. (DVA) announced the intent to form a new, independent kidney care-focused medical device company. Medtronic will contribute its Renal Care Solutions business including the current product portfolio, product pipeline, and global manufacturing R&D teams and facilities.
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