(Updated - May 27, 2021 6:50 AM EDT)

Medtronic (NYSE: MDT) reported Q4 EPS of $1.50, $0.08 better than the analyst estimate of $1.42. Revenue for the quarter came in at $8.2 billion versus the consensus estimate of $8.14 billion.

GUIDANCE:

Medtronic sees 2022 EPS of $5.60-$5.75, versus the consensus of $5.72.

• The company expects revenue growth in its fiscal year 2022 to approximate 9 percent on an organic basis. If current exchange rates hold, revenue growth in fiscal year 2022 would be positively affected by approximately $400 to $500 million.
• "Our fiscal 2022 revenue guidance that we are issuing for the first time today is about a point higher than Street estimates, as we anticipate strong organic revenue growth driven by new product launches and end market recovery from the impact of the pandemic," said Karen Parkhill, Medtronic chief financial officer. "At the same time, we're investing at the front end of major product launches, including surgical robotics and renal denervation, to fully realize their potential. We're also planning for the largest increase in R&D spend in our company's history, as we invest to accelerate long-term growth and capitalize on a long list of opportunities."

Dividend Increase

The company today announced that on May 26, 2021, the Medtronic board of directors approved an increase in Medtronic's cash dividend for the first quarter of fiscal year 2022, raising the quarterly amount to $0.63 per ordinary share. This would translate into an annual amount of $2.52 per ordinary share, a 9 percent increase from the prior $2.32. Medtronic has a long history of dividend growth, and the company is a constituent of the S&P 500 Dividend Aristocrats index. Today's announcement marks the 44th consecutive year of an increase in the dividend payment. Including today's increase, Medtronic's dividend per share has grown 47 percent over the past 5 years and has grown at a 16 percent compounded annual growth rate over the past 44 years.

Medtronic has a strong track record of returning capital to its shareholders, including returning $3.3 billion in fiscal year 2021. The company remains committed to returning a minimum of 50 percent of its free cash flow to shareholders, primarily through dividends, and to a lesser extent, share repurchases. The dividend is payable on July 16, 2021, to shareholders of record at the close of business on June 25, 2021.

"We're pleased to be able to increase our dividend by 9% during the pandemic," said Martha. "Today's dividend increase is a strong sign of our commitment to providing robust returns for our shareholders and of the confidence that our Board of Directors has in Medtronic's financial strength and future growth opportunities."

For earnings history and earnings-related data on Medtronic (MDT) click here.