Medtronic Earnings Double On Procedure Recovery; Hikes Dividend By 9%

Medtronic Plc's MDT Q4 earnings beat consensus, aided by a recovery in its core business as more people opted for elective procedures that suffered the impact of the COVID-19 pandemic.
Q4 adjusted EPS of $1.50 beat the analyst consensus of $1.42, 160% higher than $0.58 from the same period last year.
Sales of $8.19 billion (+37% Y/Y) beat the analyst consensus of $8.14 billion.
Sales at Medtronic's heart devices unit jumped 45.1% Y/Y to $2.91 billion. Spine & neurosurgery product segment sales increased 54% to $2.3 billion.
Sales from emerging markets increased 47.4% to $501 million.
Ramped up COVID-19 vaccinations give people and prospective patients the confidence to go back into the healthcare system, CEO Geoff Martha said.
Medtronic is fast approaching its pre-pandemic level, and most of its business has reached nearly 85%-100% recovery, CEO Martha told Reuters.
The U.S. has seen an overall improvement in utilization volumes in the Medtech sector throughout the first quarter of this year, according to Credit Suisse.
"The sequential improvement commentary gives us confidence in the recovery, starting with potentially strong Q2 earnings," said J.P. Morgan analyst Robbie Marcus.
Guidance: For full-year 2022, Medtronic expects EPS between $5.60 - $5.75, in line with the consensus estimate of $5.72. For Q1, it sees EPS $1.31-$1.34 vs. the $1.30 estimate.
MDT also increased the annual dividend by 9% to $2.52, raising the quarterly amount to $0.63 per share.
Price Action: MDT shares are up 0.25% at $126.59 during the market session on the last check Thursday.

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