Medtronic (MDT) 26 May 222022 Q4 Earnings call transcript

Good morning. I'm Ryan Weispfenning, Vice President and Head of Medtronic Investor Relations. And I appreciate that you're joining us today for Medtronic’s Fiscal Year 2022 Fourth Quarter Earnings Video Webcast.

Before we go inside to hear prepared remarks, I'll share a few details about today's webcast.

Joining me are Geoff Martha, Medtronic Chairman and Chief Executive Officer and Karen Parkhill, Medtronic Chief Financial Officer. for provide fiscal the on year XXXX, our will fourth of April Karen and and ‘XX. quarter XXXX, outlook and comments results on our XX, Geoff year fiscal which ended our we'll questions cover and the remarks, join analysts sell take portfolio VPs from executive After will prepared us company. side the that our program last about should an Today's hour. summaries. Earlier and divisional statements, containing our this financial morning, we issued a geographic press revenue release and

presentation can also website an The on presentation our press provides earnings that at our details accessed posted additional be release We earnings on our in performance. or investorrelations.medtronic.com.

many statements forward-looking statements any materially During of today's considered may those be from make statements. forward-looking program, actual differ results the we in may projected and

or are contained make all periodic that on any in divestitures or of made to as studio financial earnings other basis. the growth. revenue on filings acquisitions on let's in our to on a the company are compared organic no non-GAAP Additional that head of impact to the as this at gains all includes and not can we quarterly quarter with and basis. quarter during say made quarter our otherwise press comparisons segment and losses actual concerning adjustments earnings information to into that is could reports started. revenue gains we factors our And And charges statements. last Unless were would there an update foreign measures cause stated. this fiscal unless or not does adjustments And our undertake or significant in otherwise quarter that, are year. finally, we which calendar for References calendar the in of website include quarters only the reported of to be that currency share the total four compared non-GAAP ‘XX fiscal SEC. had get Reconciliations forward-looking or XXXX, revenue on do to any third revenue share found as comparisons be EPS guidance all year-over-year differ sequential investorrelations.medtronic.com. changes results release individual a made references first With reported first XXXX to basis, an refer to And

Hello, everyone. And joining results. today. reported QX us thank you morning This for our we

than us expectations. which parts quarter liked, out played were also as there were Now there up that more anticipated, of to I our of have caused the some unexpected short and come would challenges

of levels anticipated volumes of our most pre-COVID As end markets by we reached in procedure the quarter. the

We and executed delivered also launches. product on recent

we of However, our chain supply our were shortfall. to the related contributors some impacted China in largest that to and businesses, faced challenges

the well I’ll that take understand is the path prudent Karen to are two these to shortly. or however, the you be but we've into quarter the Now, you should we challenges causes, get we addressing that going guidance away to will down in persist and next these detail challenges of shortly, for more on walk root And through assumed them.

quarter. factors. this in particularly the our was and to revenue the due primarily happened supply China, April, The what on shortfall global in quarter, two lockdowns focus COVID let's So chain results our extended challenges. to affected where guidance

to quickly impact. quarters largely financial their had And few arise, they past the And teams prior challenges our our Over them. many this as to global businesses. we resolve quarter, chain have worked impacted supply of have mitigated

other Several face the but And raw below our our material in businesses, businesses shortages. a However, lesser quarter, in come Innovations, extent. this affected orders supply this our also caused Surgical well revenue adversely quarter our by of one to of and large certain to back expectations. largest resulted SI was challenges in

where that chain new and his Greg supply our Chain Greg product improving of Global industries. and path are has these and leader supply automotive making brings need recent team areas progress network. the the further Ops the and stress resiliency improve, our consumer the expertise down manufacturing issues of global we Smith, addressing The and from eliminated And chain our the retail leveraging can including of we're management the Now for capabilities. Supply critical enhancements. suppliers the we're

We structure operations were chain fragmented place that organization. have global supply a new consolidates which previously in and the throughout functions,

be a done. we Now, chain that come competitive this be And advantage a our will there with am a confident we work of is for move us. this will industry. But out resilient global big believe is of still lot a in supply I more end-to-end to

While some accelerated of half the improvement near our And delivering in on made of our strong past significant strategies. focused over expect remain year. to we for and term, QX fiscal long-term back the challenges will changes company we persist years our growth. innovation We've position in driven the two the sustained

We're returning our capital We're meaningful number markets. growing dividend, upcoming of strong to progress and Our growing for making investing while primarily and growth pipeline enhanced our shareholders, at and we're which we capital portfolio drivers, a continues today in medtech with returns the fast increased X%. catalysts to is and committed with our through allocation processes. future and creating robust by just advance management our again same time

as Solutions an care in pleased earlier to talking excited will this and in company is reached about Regarding up our The we own that, broad new And contribute XXXX. to them kidney advance will we've initial calendar this Care close I'm going Renal a million which with this portfolio announce smaller of are develop into agreement new to a to solutions, reasons. the of and suite from novel where we continuing within robust value that will couple step, transaction began return In a for business we management, we company, we expect home-based products. a year. receive DaVita. will including $XXX process we're jointly about

the going it have is to business focus needs. First, that this

a global scale and to commercialize will technology. Second, the this care leader partner And in great is DaVita will innovative and both a Medtronic DaVita expected in finally, be and kidney upside. participate

our performance about affected a the market overall our to point. with down quarter turning share, in a half share availability product company Now

we'll side, bright metric or our us share our share. as our challenges, by revenue important is gain along know, the businesses is Well, And of an through happy of even half Medtronic market growth, as flow. market held the with On won't interest at annual business take you share and variable compensation, questions for go driver with free of a it cash in time, profit, Q&A. to business I be in

create meaningful clinical and accelerate ones, cover growth disrupt in approvals can technologies product make China. Now, existing ‘XX, where profile XXX new receiving pipeline, our markets, with advancing let's we're and Medtronic. over in conducting strides We XXX U.S., trials and the regulatory pipeline of the Europe, fiscal over organic several that Japan great

as Rhythm launches to we we upcoming and businesses. across calendar impact growth We China strong expect Portfolio half year Cardiovascular of accelerate Micra look geographic the And preparing we including are starting Cardiac Micra And recently the through we're Management, increasing Our an have go expect as to our Aurora AV visibility Micra Micra will in to help for earlier led to our In with drive Pacemakers, just that AV and China beyond. to the our quarter. Starting market in extravascular our expansion continue received ‘XX again in this we ICD. growth. Leadless our make to VR product recent ahead, catalysts in back approval fiscal and this above-market with ICDs, growth disrupt launched Japan month. single-chamber we

full exclusive competitive U.S. We body significantly Structural In month. next both month technologies system spend we TAVR valves our is with paroxysmal continue been data in that demonstrated is through a which range, durable expecting Cardiac second of were heart $X number at transseptal durability TAVR pulsed our our billion submit having portfolio MED a mapping data gaps of the blood field late our advancing In platform cohort enrolled patients presented from the We're for Pulsed AV also already Valve We're adding as The and approval study drive MED And in and denervation, evidence. our add heart EuroPCR measured access enrollment pilot of were cryoablation presented three rollout Aurora at MED the significant data the And we of showed this and perform hospitalization. less year. DiamondTempt associated that announcements approval renal cryoablation. and building and year the ablation completed ACC market, in to to in including target our more With cardiac better a announced RF piece as Micra receiving recent trial. to for ICD, which SVD in Select to expect differentiated year. years. HTN-ON pressure approval system to pivotal data our Lancet. SVD left ablation surgical CE additional data perform showed Structural one global In five strength we CRM. expect present and differentiated failure We're clinically navigation to FDA this in with to Deterioration. follow-up In calendar assembling our system impact at study, mechanical continuing last presented crossings. towards of calendar durability submission. final ACC the including only fill first-line continued then clinical by time access increase QX, we or last for and week, system to robust half These and indication Solutions, we've and six-month reductions anatomical breaker ON the was RF can pressure and our simultaneously those at a were in SPYRAL Mark that complete our look blood data ablation Ablation We'll of in for as the EP our years mortality last AF. later fully Heart, also in Field the the ON and outcomes, valves published leadership on and

move TAVR and to our of FX quarter Evolut year. later EXPAND market market the pacemaker separate in to $X planning Europe X and fiscal presented as into we're or a moderate with SAPIEN first aortic And of here the XX We years month at next TAVR compared large from single-digit discharge, launch valve hospital in had looking registry, and our market CoreValve trial, five TAVR valve, one-day it represents our with PBL. start release within also rate platform $X.X UK we large rates limited full past we structural the patients including week outcomes in of China, $XX and deterioration look roughly expect the Evolut billion next technique, into also PRO+ the moderate data earlier excellent began TAVR XT. this evaluating SAPIEN were implant indications. market. stenosis. first entry years. and growth release quarter, to EuroPCR severe launch We're of this showed to absence billion In the pivotal our U.S., and to And data first had Overall, our one-third in Evolut last in TAVR at In continued underpenetrated our first expand durability next-generation TAVR Pro reinforced overlap our driver Medtronic enrollment data the the the this reach years. three in for a our exceed billion cusp in fiscal clinical to Additionally, the symptomatic

Moving to Hugo our France we our Hugo and Surgical market and Italy. robot the production. we of limited in scale release remain while completed on installations Robotics, Denmark, We focused portfolio MedSurg

Surgery FDA and video to sensor. Enterprise, next-generation continue Nellcor our Touch Monitoring our AI-powered In - clearance also pulse installed earlier month Patient analytics surgical ox for increase just OxySoft received business, this We base our we platform. our of

silicon adhesive patients. enhancing for fragile Now care improve low designed accuracy the while skin LEDs most Its brighter and special protect neonatal and this adult profile sensor critical to includes adherence. responsiveness a and challenging

the sequential demand and titanium rollout platform base. ongoing we planning our Cranial the our we're for user navigation for our equipment launch opportunities our Customer & Technologies the launch market spine. we teams to The and peripheral our seeing strong. our in a one building submitted $XXX also remains the Catalyft ECAP’s interbody our Mazor Intellis billion. stimulators of and up about strong of Neuromodulation, in We million our and of of calendar loop And expect robotics mid-XX We're medtech, turning adoption U.S. to to spinal the believe commercial our largest which we annual FDA continues by FY growth 'XX, unit system record and enabling our system our Vanta quarters have technologies initial differentiate portfolio cord AI-enabled of total Now treat excited addressable cord reach DPN of we're started stimulator, business. is expandable StealthStation with last with neuropathy. to closed system. surgical had spinal $X Inceptiv market year. Catalyft an And Spinal and late In us in to diabetic to Neuroscience

closed-loop market. attractive our the to driving ongoing SCS the our this in happened and both leads our several X features fourth the Inceptiv’s our combined in double years use sensor In SINUVA available. In XX which and sinus to life extremely well to can we And approval be and for globally. complementary where recharge-free in fifth-generation we and next-gen system Brain the only of And the chemistry PC device, neurostimulator next believe sense XX U.S. patients revolutionize provides add expect InterStim MiniMed the And excited Intersect continues can therapy, in existing PROPEL with grow digits Health, directional signals. Intersect's our We years of need products ENT. the ENT, quarter. their the stimulate received into Modulation, pain over to Diabetes, products high-growth markets of optimizes Europe launch and in InterStim Guardian InterStim share we're is brain proprietary announced we battery recharge. In X both of pump, this of We Percept our SenSight implants business. that that was new implant insulin relief FDA the X, that it's Pelvic to battery XXXG expand completed without received we the that acquisition is we month earlier as

real time a is has basal more auto positive insulin with system and time very due fingersticks experience range. to correction user boluses This and this near Now five and Very no with less underestimated its XXXG at interaction. strong presented occasional improved and counts X doses. and mismeal address minutes showing range carbohydrate month, were last to Guardian and data on ATTD user every time

Additional datasets reimbursement helped next France Germany also that which system in system will this growth at the And international our shared differentiated month. high-teens and drive in we of announced be began ADA the in diabetes. on And sequential quarter, to sensor, the and expect we Simplera, meeting Mark warning our commitments, made our have and generation CGM with In regular submit substantial observation communication for letter in we to continue approval progress and CE our this FDA. pipeline, next FDA summer. U.S.,

advancing performance, gen the it And programs, pumps. fourth investments Karen? we're financial sensor over fiscal new addition, considerable making of to multiple growth in business pipeline patch next I'll Karen pump over strong turn coming diabetes this our with restoring to year. We're in guidance quarter including line the years. sight discuss and our In our for and to with that, next

Geoff. you, Thank

East perspective, emerging From emerging markets line, of revenue the declined markets the be the of X% in national COVID and less in the America, quarter. strong of lockdowns. is the revenue growth mid-XXs About range. had expected, revenue X%. X%. grew Within ahead difference Geoff foreign $X.XX a Europe, a And growth of changes impact our the million we driver X.X%, our exchange to guidance Non-U.S. and difference organic quarter of shutdowns over result $X.XX, U.S. $XXX would developed a remaining Compared reduced spine EPS is on growth largest markets, due our volume Asia. grew roughly can our given XX% that the this growth impact supply many recent in purchases and very have including COVID of emerging below given had about Latin of course other Despite than to bottom difference we China our the and chain But fourth geographic guidance the in South Middle coming distributor Our markets, tender. in to XX%, increased in discussed. resulting attributed potential that in we Africa, issues in low-XXs Eastern based rates slowing high-teens declined low-XXs in and and consensus, below XX% consensus. growth the China,

emerging fact, the excluding China, grew markets in low-XXs. In

our like basis margins, ventilators with XX sales improved sales margin our by higher lower by to points Turning of gross Micra. product year-over-year, adjusted mix of fourth and driven quarter products

our inflation increased the impacted as that of quarters were we margin. our next realized While gross labor inflation material off inventory by with negatively will and worth rolls expense, affecting freight be from noting it's full over our impact couple balance sheet, on the raw direct costs

by the adjusted drove margin, we down additional increased XX continued our and operating improvement from excluding also basis P&L, Moving which currency. the points, benefit in

the representing our XX% and free cash ended year-over-year with net adjusted income. of meeting growth goal XX% billion, also year from $X flow We at conversion of

and markets. remains where strong, growth we capital with We're and sheet an $X.X continue faster create strategy to sheet especially we total new of growth consideration. tuck-in heavily that billion process we growing part over have model. will M&A, our utilizing innovation-driven as totaling investments balance balance announced In to four targeted active R&D, medtech generate Our allocate future investing very in We're our capital expect acquisitions operating was our fiscal for that to to 'XX, opportunity we or also our our developed programs in complement using markets shareholder returns. new with solid committee

incubated $X.X acquisition by morning, board earlier promising the fingers portfolio early the and in of to And of to share and Geoff earnings we through fiscal We're we're acquisitions. ENT providing acquire one pulse our technologies, on this repurchase. our products At left investing this actively ventures month. future As companies increasing X%, our intent stage and last our by a future the also heart dividend in announced our and financial that we access 'XX month, reflecting strong mentioned, new net power. become billion keep Intersect closed to have announced that time, and our our in could returning confidence we're return also our shareholders, day strength we same dividend

we shareholders. Dividend dislocation. dividends increased for in are our supplementing the now. where see XX through we year, that is an repurchase, we share Aristocrat, billion having S&P important total price We $X.X past of an dividend in for our we're dividend return generate component and particularly years our paid And share periods opportunistic This

In fact, fourth X.X billion quarter. the fiscal stock our in we repurchased over X.X in billion including 'XX, of

our Now starting to with turning and guidance revenue.

We our a And difference businesses. and continue of many to product expect to make many recent Geoff launches earlier. pipeline our covered of in them

We expect organic growth X%. 'XX to of revenue X% in fiscal

grow fluid, $X While X% recent Medical Surgical Cardiovascular X%; the X.X%; X.X% $X.X to to grow would an billion of By is hold, if exchange we billion. impact X.X% Neuroscience decline grow to Diabetes all currency a to expect year to foreign to and to full negative segment, X%, to impact revenue of basis. organic rates currency on on X% have to X.X%;

would that we our in to near fundamentals. can elected United improvement change for no we include X.X% receive conservatively X and In underlying chain organic it in major which to assumes XXXG have not range hopeful term no guidance. approval model our While we in the you Sensor Guardian of to the supply in we've decline to States, first revenue are quarter, the X.X%, and

decline first Diabetes $XXX between be X%; to By and all and hold, $XXX currency to Medical to basis. to Cardiovascular expect to on would X% headwind X.X% XX%, have X% X%; rates Neuroscience the X% we million a down million. X.X%; organic an to down to Surgical exchange decline recent Assuming quarter segment,

challenges investments to acquisition I but offset rates and near-term have although of exchange last margins, These same about the now and we year. create time, and opportunities hold, changes on we're continued foreign for larger on foreign talked also large wages, fiscal environmental challenges late-February. FX headwinds, also account in focus to $X.XX become where mitral and EPS currency our the the impact R&D, the headwinds. diabetic to FX first recent still denervation, and includes unfavorable color look supply rates, growth about transcatheter of robotics, of chain the our in factoring valves. peripheral call, EPS in future them. we provided this 'XX prioritize pressures at of to quarterly Taking line, continue in dilution earnings for seen down of to all $X.XX range exchange an continue we've long-term inflation, Inflation At early an expected we Moving a quarter, P&L, on the with 'XX, into early since like fiscal I Inflation $X.XX we diluted $X.XX in neuropathy to rates. expect the organic on which at opportunities $X.XX bottom from for expect $X.XX in including headwind non-GAAP markets, the current impact renal $X.XX,

Thanks back Geoff, it globe I you to you, day. the send hard Geoff. working our employees macro overcome we fulfill do our I all thank mission who the to challenges every want are for Before Back to around face. to to

Karen. Thank you,

talent to Companies from Top notable this inclusive Medtronic diverse as number on strides technology more top made was XX I circumstances lines, ethnic right we we've boldly, Medtronic While a gender the on month 'XX, environment, innovative competing a Along spent committed quarter, and and attract, we're briefly proud mindset all been and it's improving to big a talent time model, we've what fostering, delivering in the from such industry to becoming that was with time enhanced Diversity We've better U.S. and Inc.'s reflecting of decisiveness, to made 'XX. our It's has in full with for changes Even beyond. the of our hires fiscal backgrounds. and organization And short certainly difficult results lot and period was enacted in to belonging a first year speed also way. develop unique great healthcare of fiscal with worth in and accomplished acting fourth win, earlier organization. new Diversity. through the company. that, very our those operating position It and moving programs and XX retain under covering recognized recruiting

implemented would where a we've our have with the growth number clear But results. While we're the drivers pushed pandemic, been of than direction year being challenges choppier out headed as liked and we supply changes, we this I transform quality our company. of a impact past direction, affecting a has chain from the some and have clear

start Let's with top-line. portfolio on robust the We the accelerating laser-focused and allocation management. remain capital through growth

You're efforts We've greater enhance of as as lower year. on our growth in growth already portfolio We're organic organic our businesses. faster-growing seeing also coming footprint our to through reducing healthy future of tuck-in and investment the well we're fiscal spoken moves. us, this lower-margin front R&D, acquisitions executing many growth cadence a later in markets, catalysts focused of in and in

continue improve the company world-class a our that integrations centralizing we new XXX% technology isn't have operations. dedicated that creating higher And opportunity supply ensure chain starting moves to allowing our to and synergies these just us for our have now. we in have effort, focused our team global on ultimately, invest a work something where We we chain experts the assembled scale, global and is time, the the of and same leverage divestitures. supply responsible portfolio new and by this expertise, to activities, we've portfolio we're this on with additional higher operations and growth goal distinct across to At And margins. aid

it fully lead quality to take we've journey availability, efforts on and reliable I a over urgency, been Although this recent a along consistent to while our expect greater time, lower sense for And all greater drive given challenges cost have will a and product of with year. basis. on sustainable us

and lot our look population. solid at and positions inflation, facing products to and and questions economic continues with a very impacts times technology healthcare, essential product Medtronic situated, supply robust like technology, the health dividend business, When for and of global around free potential the lifesaving to uniquely beyond these. pandemic from uncertain something of growth the our healthcare markets, our our flow, chain delivery continues good of in times leading global a recession. sheet, with these challenges in is our world in increase our And and diversified growing balance market is to the add a that pipeline, is cash demand a But well to uncertainty Now given you of continued uncertain business strong return with growing shareholders. times, and attractive particularly businesses aging care

challenges opportunities and healthcare are near overcoming. that we have at We technology are And term the Medtronic in immense.

are fully transformation and on for opportunities our world. of our as We and health millions focused reality people on life continuing a extend alleviate restore the around making pain, we journey

get want employees. to inspiring. their the It's thank I day. our Medtronic Finally, our exceptional I every to see mission to outcome fulfill of efforts

and our through in our be final incredible and frontline one of all and thank day who partners in us model their have in that get the the Their new in the In ongoing are great will embrace lives step health to efforts patients workers addition, care, get history. and their ensuring to day therapies care culture new continue dedicating our into accomplishments pandemic delivery at are willingness our to been noted to as out. lean want the key the operating also transformation of company. I

possible, to We're Now and going as question to analysts try to ask just let's move to Q&A. related follow-up. needed, so you limit only get if many one a as that yourself we

question? can reach a can and questions, to the you instructions after the you the for Brad, that, Relations asking call. give please have you out With team additional Ryan If Investor

recorded. Instructions] is being session [Operator Q&A Today's

White, [Operator EVP are and first go the Instructions] President Karen at Medical unit; by of portfolio. of Jeff, Wall, of joined Vijay, and portfolio; portfolio the operating Cardiovascular the ISI. neuroscience Salmon, question Diabetes and EVP President and Evercore and today's Surgical former Sean Kumar ahead. take from Brett President session, Vijay EVP the We'll For Ryan the and Bob Head of please

disruption high a think are had that noted for guide taking there mid-singles When you about Can chain, 'XX, some robotics? than I the think Geoff, Consistency Karen, my the back you from that supply some X of better for back, asked. I in the further earnings. China Is supply for I chain I I'll take ask years. slightly assumptions has orders. guys. fiscal and specific orders? back supply right diabetes, at related a both had something assuming came that, X singles you have it expected. two maybe questioned. part question. Medtronic contribution chain? parts -- Hi, organic talk up even people Thanks some pieces investors some Geoff been And to to were if Any question. away. I from over look What have perhaps there moving is We've AVP something step around

the you changes top As high -- EPS mid-singles look all to? that line singles at should be have happened, this what that and of that you should the talk something on gives the on about the investors confidence consistency maybe forward look

we're to Sure. -- and Well, Maybe, 'XX. the let of things constant second terms total second the in place. part in the that of on I’ll for mid-single first part return digit and right X% to X% the question, high-single EPS details I take digit take me do that the part growth then thanks shareholders. FY think of the top-line for putting double-digit getting confidence the currency or the Vijay. But can Karen to question, of behind

So next first quarter issues over abate details we the next detail see of in into year, you'll we get acute the faced all, that. the of QX. but just so, this, -- or that the back the and order can over next can Those Karen over

us comps a the In like in business FY of LVAD the pandemic. definitely addition, some on anniversarying of ventilator exiting Navion during lot tough the that the height recall, business, our we're hurt things 'XX,

those pipeline about and the away our these -- a lot these we've now, over And and Hugo the the than the that we've in some through things of the this lot then And things We've get I I like finally, big got much think got go kick soft -- whole portfolio of there's a so but go that -- FY add fiscal And in, already but of and some half of catalysts. course as There's the actually. -- long a finally, this. and well. in there's will robot, year that. over abate to second can bigger other went next things we'll ones, broader then you're so, it of lot 'XX. starting or talked year in then even So list. ones lot a then year it's the over or through that commentary, tissue moves I growth a

and mentioned we units, are that's the part These the we you then gets just that, we And And we So from that consistency. model more tuck-in the clear cardiac quoted. some to of solutions how competition. new meaningful question back the the R&D, as R&D have the your numbers ablation on space like of as and kind to AFib get their acquisitions, confidence closing are down to of AFFERA People in are the into where into is the years I'd evaluated our and space, And putting to and visibility say markets, meaningful into robust our more their ads. double last spread across pipeline that there are things. One businesses. innovation, second we're this ENT the been we the hard of XX putting on operating acquisition. couple having getting or all a operating two have working over we've pipeline, their Intersect end well

last us the coming that us. as the global of consistency year our commentary for piece But on growth we supply and in an more gives ago over that important focusing in is terms Brought diversity myself the changes the our this and top-line. chain mentioned So been operations in year have on supply over and already really is that we future as opportunity made. centralized These chain. really the role, and Smith, for Greg team identified a this and into are we -- the

made changes and well this environment. dependability. started we've supply we're liked It fast resiliency. middle But and to in chain. have this especially have decommits of chain starting resiliency out would to because chain these the there. transformation up ops back supply this supplier the Our I confident just era path supply building more We've good that set ever that unfortunately, half moves had and and We're down that more a make hard helped that issues us And on global and -- seen. -- a that we're news in time it and hold And not we the to of came have to is moves in in different taken those getting now would be these to haven't changes. hate will fully give that yet, done for QX those definitely the really we quarter pass the earlier. of any the was need they mature. than I'd

add of that the the just combination That's about that the the digits, But confident when of in Karen get long the to of some how I we So question. range supply over the resilient EPS we're a and global that of you high-single in that guide terms gets X% dividend return. forecast terms we 'XX below the hope plus and digit more to I to talked Karen. mid-single you turn details add including -- moves portfolio answered consistent plus can option in innovation, double-digit a FY that, the that I'll it. plus, and chain. But

pieces because improvement we want the year for through Vijay, take also expect this question, QX I to through quarter as Thanks, walk talk full I'd the you and because about then love the to year. Yeah. we and move in each

to fundamentals QX, quarter conservative take underlying given QX QX, last a pretty conservatism We're we've guide. elected in similar the assuming we've supply our with chain. challenges, some to recent are in to starting just with our approach and built So

it's view, influenced year-over-year the by at look you COVID. If

that That's you historically. to supply conservatism to COVID good just just it's QX. not slight seen on when And deceleration And so to remove look QX basis. our a do really chain. what again, think to I that that, of emphasize I at would implies from noise, comp-adjusted due with included guide we've really And a line the it out we've

I mentioned half. headwinds side, to in we and got QX that ahead some national improvement Geoff impact guide shutdown. we already back supply of LVAD the not XXXG pressure it's QX, that pricing we've in and China puts the If year, for also takes the impact the as we've Geoff year. Spine. that on talk puts a mentioned work got on than we actively year we've have assumed plus conservatism, believe first anniversary also, our in of we on as spine through about talked the in assume move the and letter. we've primarily approval elected in like positives with number beyond FDA 'XX. And manageable, full this and time, bigger it, addition purchasing And chain progress to I'd think the volume-based And then the will do incremental a into the also about we potential about But I some China we the guidance. our the Navion Some but volume-based the takes our that full the a in the tender. we same X.X%, quarters the we've talked of of at in have fiscal recall FY about in diabetes expect we better got half factored that We and in, much of continue to fact this with But warning

we on in basis First, anniversary. some the volume-based in the Navion drug-eluting And all the China that point those LVAD FY we've sales a got impact to reduced headwinds 'XX. had XXX Geoff mentioned. had that of stents combined, business, recall, ventilator away, go are headwinds pricing also going will that And then

And we've just expect our challenges get to we year-over-year got these ECAPs, diabetic Evolut a improve the a naming lastly, in name obviously particularly year. of thirdly, painful supply as half. a to and And then continuing Second, we've got few. And number of really comps starting QX chain them, FX, back improve got again, easier, from we've there. few important I'm got then product to in just the we've neuropathy. And launches throughout

the So move implies what I and as year. shows that's our we throughout guidance helpful hope

That’s helpful color. guys. Thanks,

Vijay. Thanks,

Brad? question, Next

question The Bank from go Steed ahead. next America. comes of Travis, at please Travis

there up two Hey, versus May as part U.S. of is well. shaping to next supply second start the was we don't is a little one the improve impact worse Thanks innovations. quarter good the bit The for the April some know the I elective got lot in or kind the going something with this was of in have to make part I here I'll procedure sure peers. first morning. to on kind how want China your specific if a that, ask or I back recovery. and Curious than And then issues. well. taking worse confidence two. a world, guess, chain of as the quarter around things going the surgical that's some to in of just both question. April,

FX semiconductors, it chain And most getting Surgical in that. things. businesses, it a is is And our in supply second they resin about more I'll second, -- our packaging, trade we got -- $XXX three also was talk million half our which the particularly second but million, to It catastrophic one It into hitting that cause chain to the than about we -- SI supply yeah, that due the about understand Sure. in China has we root affecting the of miss And pronounced it I'll particular to believe disappointed The been take one's miss. started across in is supply QX. chain. explosion our we due of Innovations it then issues, really was businesses, that maybe is look, us and us. miss maybe a business. and miss miss, -- XX% did no due Karen of worse, and can the was our of energy business first. was And And but is get SI XX% business. they source was But of the -- in affected for and us did resins number I chain. everybody the XX% there QX a problem definitely am. number hit miss, that I'd supply then a use that lockdown in a of XX packaging a major $XXX the of the say another our in

supplier all And half into chain supply better next probably getting The -- And or it SI. most that mentioned the a we of biggest company, the issues the the SI ones, were decommits. overall get surprise, factored two last it more the the over take getting see so, the so I'd our the is put packaging abating say issues those first see issues. quarter the than in year and two. We to quarter I -- for on through the or the and over that will next issues, China. was guidance. this one those biggest We biggest of SI the resins

remember, have us April. really -- hit in we April. This We have

some that have roughly the shortfall April the QX, in combination and lockdown. represented about We our Karen And mentioned procurement. the of of of volume-based $XX million COVID

So the other grew mentioned emerging markets in XX% China than down commentary, XX%. as Karen was emerging of actually China, and markets, rest or XX%. our the grew more

of whether I'm right a we're had. answers over that earlier. and I'm we we year different wish that very technology resiliency the it centralizing have a even I well team commentary And would and down And said, in I And path my function like path started building in going remaking ops the And operating that mechanisms these strong for and I acute industries, down issues, and this. under Greg, chain just new we all I started kinds bringing we did. and so of bringing global provide ago, there. the these be confident the glad leadership some to in -- -- supply people in started from mentioned tools know investing our that were one we of haven't when

answer will of the get over hit long-term quarter or those the question. time. away or two. part But go next over to it the the our numbers some issues that the better take turn will first acute building to So Karen I'll fundamentals

you. thank Travis, Yeah.

focused So just May, of And we've in businesses. the in some still of through we're obviously terms issues that managing our early. of month got on supply some it's

first but numbers three units And pre-COVID I look are weeks we that elective not largely were we note levels through procedures to our the trending of are quarter. supply part would little by year. in-line the that most where just for back quarter when us cloudy, operating last for first So impacted last the with a at issues, were May, we're

Take Okay. Brad? next the question, Thanks, Travis.

Larry, Larry from Securities. Wells Biegelsen go comes question Fargo with next ahead. please The

Hey, good for question. morning. Thanks taking the

start today, The be on for you Geoff, kind Kidney fiscal maybe on like Hugo, 'XX, Bob, us help pivotal U.S. significant? and much, the what of just they expect expectations should understand Just goals of supply expect remind error, what when the and are guys. Company trial. setup more to the so news us the more of Just this? And status the we Or overarching could constraints are. preop the Thanks

Nice Okay. to you, hear from Larry. for Thanks the question.

development. the table the to lot as that DaVita partner other we I'm smaller this. forward, moves what portfolio think, course the think 'XX. as and continues, this and be And more technology commercialize to And I table not DaVita, there And smaller side On for we've of of the kidney FY like the the move great terms Care been it. lot over bring management DaVita, to about for technology the forward is looking up step a as I that with Solutions not obviously, portfolio to work going care work. size -- we characterize in under would on anticipate this I'd a characterize I'm the been and or But could bring we while. They as a But that. a This comment of years, be I in bring portfolio we initial joint think working initial I and this venture That consideration to a a focus commentary, scale will in our finishing do more a this leader the I'd I said those. don't JVs that moves be on anything step. on excited innovative like will technology. is am joint I know Renal venture that It's then there.

a this way will there's the this the and technology in share that just think made sense. structured lot deal. we Medtronic one, and DaVita this upside. most we this upside And For in one of Both

So looking forward that. to

the the of portfolio goals unchanged. terms In of they remain work,

Our of on want We flow. back North and growth, durable growth higher level just taking Star a durable step without a cash growth. free is margins

remake And and so to portfolio [Indiscernible] consistency we a for higher want the and more growth.

bit. the And would goal. secondary the think simplify the that's other goal company be I the to So just -- a

are the -- That's we're that's to more headed where and those goals. come. So

question. from And good the to Larry, hear Thanks, for Thanks Geoff. you.

Let a good you update me on Hugo. provide

recall release. milestone. past countries. had surgery, a of market surgery So this We Panama, followed Italy receive we've in first progress chain begun we're a currently still Chile and Denmark. supply France procedures in Brazil We're general cases in you'll Australia. in which done did the number Saudi general in in in including now and eight approval India. and We've We're installs and making in Canada issues. And good our across regulatory and We've urology, Arabia, gynecology bariatric limited on case, was quarter this nice

The second IDE. part of your to was relating question the

and relatively soon. site IDE train the begin approval. the to IRB expect gain closely personnel to We're We working

stand on we'll take where helps on Hugo. hopefully good So posted keep that But done we that. for certainly a thorough

Thanks, Larry.

Next question, please, Brad.

next Shagun comes question The Markets. ahead. at go RBC from Capital please Singh Shagun,

Hugo VBP What And capital FY management question. you We've update for the elaborate takes. your wondering you taking in you just and 'XX if heard impacted much can QX has soft. sales for comment Thank puts initiatives. you was a if can magnitude give an you us your some so on are 'XX? the just portfolio little lastly, environment. on guidance? China on assuming the FY And can of been I

outlook for for the your year. taking full Just is Thank what the questions. you

We've Hugo was I'll me of I'll so music couple second. there out. a start there one. there, for But start, help Okay, on Karen can there's right. good some on a maybe But got list -- all maybe a the

numbers expect is just We quoted haven't say for order Hugo really strong. ramp. 'XX, book we strong We FY the but I'll a got

and give procedures, that different the procedures. about of we're approvals general including an in got of we've just now procedures You the various all surgery doing, heard type Bob type countries update

up the moving chain we're So food there.

really we we we a of 'XX. see So exact confidence lot FY nice in something ramp But we a in gained that quoted haven't have Hugo, and numbers.

a And a tied, directly procedures. QX for that In revenue-producing us sell the lot terms we environment, in capital profitable capital bright of capital spot. are to specific procedures, our of was tied

those think of numbers excited record neuroscience Spine we of equipment that the we're or out to and our building the business. the number those which capital -- in as Spine in And further record our place in a space future sales of really for differentiating I turn equipment, for our helps. us. business. is And other it ecosystem, that StealthStation That We highs had optimism business the that's portrays and for O-arm strength sell I'll just that our had navigation, is capital over at we question. we record Mazor. Karen parts the of

Thanks, Geoff.

I know portfolio on he question when a you management, two, shared which had answered The Geoff question. other Larry's

China public insurance the national national With I'll products and expect we've government the And dealing top So on from regional by a medical cover VBP. a to variety already. of we XX with tenders to focus VBP, device been just spending. continue expectation

tenders, where of that I in we've second happen quarter. and year already, potential back talked spine likely we've So our of through And about we ahead exposure, expect we joints. And industry and pull spine to see two been purchases. But that through fact this the impact distributors fiscal players stents their stapling. large got the more do gone some ahead surgical us of to list and other on tenders have on

well. into that we So guide quarter as built first our

to and stapling X% China to for revenue. though, Just somewhere X.X% company exposure between remind our both of total gross in spine you, our

we could be the is to because it lines, based there offsets we'll have with on experienced product of And ultimate So the small. other working impact coronary those. on number we what do net tender, we believe pull-through be and

Shagun. Thanks,

the to question next please, Brad. go Let’s

& Company. Yep. next go at Jennings comes Cowen Josh, please Josh ahead. question The from

renewal questions. incremental interactions in you better lot the see Thanks with for parts. in ask But with this the fiscal further seeing get business guidance and then letter you for fiscal trending of other you And for Is to morning. taking deceleration then the occurring. FDA? share you I that any patterns or warning was sense a business. what course could share the U.S. endocrine I think your the the of of XXXG I approvals details pressure? good gives a just pump know that for U.S. just some to out why of painting in that's there's know year. that you prescription on pulled can place And pump how regarding you occur the approvals. wanted kind on see 'XX year? those diabetes But I Hi, and hoping incremental you patient moving sentiment? the XQ, wanted questions. Thanks you work insights could Just fiscal in hope of taking still terms the Are over

officially I'm in to second, here role on the that on to going Thanks, portfolio. to a Cardiology from Josh over although questions. it he Sean for our exclusively focus has turn moved

Sean. you'll excited be earnings next And a her already And of her on couple she's ATTD, the has and in from now the a that and Que moving excited to hear chance and meantime, She right really him at ago to settled having Northridge, say question the her. and joined business she'll about is get see Que. have call you'll words this diving unit, In out we couldn't really she's be meetings this answering just family diabetes few diabetes upcoming she'll to be these over diabetes our some Dallara. get and on already call getting quarter. site our to I'm questions, here going in, and questions to I'll shortly. about fuel field to taken a She's California We weeks in other our company the

that you Sean, So the can question post? answer Josh

for question. Josh, thanks Yeah, sure. the

grew combination States. XX of of Guardian competitiveness revenue X and sequentially all on on strong XXX about now the So different demand We the dynamics in And side XX%, really sensor, quarter-on-quarter which United the countries. high-XXs. that the the for in really are based in the things is by that's EMEA

quarter that We either So a was lot everywhere that that up really up and we this or reimbursement us it's really We favorable reimbursement. by steam reimbursement had Germany. drive growth. no picked that past driven go, France of in continued picked helped

come of new it's for it Karen prescribing or technology wanting for did -- out not warning the for the progression, before is lead to obviously people therapies. letter said, conservatively patients So wait that as to dynamic within some the patients With we to to really on the it and new the competitive U.S., waiting guidance. moving regard

been X I the system, outlined think which in those quality thing that's subsequent have warning items was in prudent. we've progress important against XX We're now. adults sustainably day, or time highest too It's the don't and improve up range that want excellent solution, recent at but that reason unique see on debt just never commitments. has do the time to than But And as that's were it's really shared, those the huge to it the overnight. for well we itself to coming are for review and and is the improve the and the And say, letter. XX% up those real-world the all revenue, kids range most to the prove before. data XXX commitments. to the there's And we're a the And suffice ATDD we worked robust Sensor course, a patients. getting reported. the where made And interest more right technology really ADA. both seen during with it's the numbers under in the that's of a also as conservatism, we ahead that from to you get The of the in FDA continues applications. And active going way FDA through predictions, meeting, timing note fulfilling and solution, for Guardian to important

conservatism predict But turn guidance. what's we'll when we're out, get in think the the for we around. boat because That's solution that confident I So can't it. we the very

Josh. Thanks,

Brad? Next please, question,

ahead. from at go please Citi. The next Wuensch Joanne Joanne, question comes

Hi, you how this are morning.

Hey, Joanne. from Good hear to you.

then at classic we're first et know aggressively So so quarterly ramp throughout and not And Talk give the of X you and be a guidance, first the give us helpful. quarter, percent is level like sort just along. year. it how if resetting when your to us look that go in what through quarters a in words you just I the a I the pretty can or got as ramps Y improves. your don't you pretty would quarter, quarter, that in but take of cetera, guidance, really to second we you've sort conservative of what, are the remainder set like

out here. to of Just sort from build

quarters. for that Joanne, I'm the going know guidance question. got other for the Thanks, anniversary specific the I let to we've quarter. through things these give will you Yeah. But that not

after sales improve up take in starting quarter that ventilator we in sales. about in this our challenges to So biggest those was obviously, happen down and second the quarter. then ventilator Ryan expect and supply call I that And And in can know changes you the quarter.

the the time fourth our particularly growth getting quarter. quarter the think So the given particularly comps better you And obviously and year-over-year of had. ramp about in quarter, get fourth half, we a that easier. get revenue And better every back by in to just MedSurg,

about And fourth ramp. in in that is through more line strongest year. our launches how as obviously, going year, are launches as through too we the the product think with product go think growth, earlier So the of We've ramp then year. helping that the that in us some and quarter you we got will

that of easily some more I can detail, too. you take the know through Ryan So

be denervation get piece renal completed enrollment sounds It thinking FDA of you Are Appreciate in the but puzzle. that. And we calendar last fall, year, the next you've of presented my second year? the spring. then like mid the data for question, won't data in the approval may

to one? Sean, that you take want

the last starts. last dictate to PMA, bit that fill that have important PMA. timing piece data will of we And we've Joanne, would clock modular when note which that a that Yeah, for the is done It's it. review of we the

this been So modules the reviewed and manufacturing all has already closed. advice every other of characterization, have part

So of it would last it's the that really this piece go into review.

you day. a have and Thank Excellent. great

Joanne. Thanks,

you, Thank Joanne.

for We have question, more Brad. one time

Sure.

are Deutsche ahead. you final question Bank. Pito, Pito Chickering, on Our go Pito, from mute? comes please

hear There go. Yeah. you Can now? me you guys

Yes, can. we

pretty interventional questions I'll lack hospitals you Great. for due of but the to contrast, to what to the there quarter beginning any, U.S. Thank if answer, assuming us cardiology. due question hearing, what, is U.S. in dye know are And that to outside is anyway. sort GE? seeing shortages supplies heard ask here. from Any impact hard taking let We first what the you're guidance? defer procedures your it my chance you is you're This can from for of and

Yeah, thanks, Pito, for that question.

we're Many we just within already the to and expect it's see the them we it because the instituted transient getting dye stage, impact can watching transient issue mostly measures. support contrast quarter, at the on It we we better the into hearing. this is the working first how But conservation contained But to a United believe help of our something quarter neurosciences first we're can guidance quarter. for them it's what closely resolve through health and we've So It's a based have States our issue. And it it view to do that with built allocation. U.S. in do cardiovascular after we're believe portfolios. systems thoughtful

DaVita transaction value quick what Renal Care rate on guys to you A of portfolio? set so much. the organic adding today. will DaVita with follow-up and was is Thanks the What growth the their Solutions, strategic of kind

value. bringing be experience. States will channel pretty of market I Medtronic inherent the creation is the Thanks in of us other picked something value that some the to some we from around that that in businesses that will up technologies home technology drives synergies home just innovative not IP that be dialysis and market it. and the table. And technologies. up think it I even it, it dialysis It both unique. big any around transaction There -- dialysis the And Pito. the is something the for mean And of answer But we the I'll bring second into revolves a go-to-market the is the strategic look, kind just piece with. I'll question, we building of costs a answer a know-how. different Well, we we're part products. lowers access, patient there's better couple this and the that in have United to the context, the

brings channel in of these well. a of leader as And clinical they a expertise kidney customers, that to so that one, lot lot so -- DaVita they have a access care, obviously, bring they're and

we're I get home technology. before, with upside way about the have going structured it So dialysis it X the is think way said than excited it's plus the more impact. think really DaVita. here. we the We share big it. definitely we to X to is And And regarding equals X a like in It I

In terms question other of the the -- organic

Pito, and lower It's us. about us it fiscal was digits It renal business in a the margin low-single year. for last growth for lower growth, is care,

remarks. your please Thanks, ahead go Pito. Geoff, closing with

Sure, Ryan. thanks,

about, consistent we’re usual, your macro things, and surprises heading and us our and And conservatively that I a doing, made new get back where that appreciate things direction are just headed. of but these our X% innovation-driven the And supply for to forward. driving thanks And we everyone. quarter. the into working we’ve your of the I'm macro benefit environment a in We're provide importantly, gets provide that need I mean this more And there supply that's the chain of the we're like chain I need posed, we talked us earlier issues the portfolio direction travel in I do. that to questions, clear getting you these right think basis. it the and to terms to shareholder choppier these the on moves. right right to company to is as here, this and we're the the execute clear making resiliency digit, growth. allocation -- again, and Well, that the mid-single a model global we has more for to the for will some guidance China -- going portfolio on reposition factored The as including the But changes returns management things through But that hope the continued see to plus operations company growth we’ve realize in direction. questions where consistency capital that a double-digit interest on operating higher It and we’ve that finally, confident Vijay the Okay. go. sort lot Medtronic. look, support there's

we're earnings forward in on we anticipate So looking August program, to which XX. the progress you our update owning on QX

today. great thanks healthy And And tuning a of your for And have rest in again so day. stay with that, safe. please and