Analyst Note
| Debbie S. Wang |Medtronic posted fiscal 2023 first-quarter results that exceeded FactSet consensus expectations but ran slightly behind our full-year estimates. However, our adjustments to near-term projections weren’t enough to materially shift our fair value estimate. Compared with the larger medical device market, Medtronic’s quarterly 3% revenue decline in constant currency trailed growth at other industry leaders. One factor appears to be Medtronic’s relatively larger portfolio of electronic devices where manufacturing has been hampered by microchip shortages that are expected to remain challenging through the calendar year. Nonetheless, we remain confident of Medtronic’s wide economic moat and see evidence of it at work in the quarter.