Medtronic PLC (NYSE:MDT) stock fell 0.93% (As on August 24, 11:09:43 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Gross margin in the reported quarter contracted 161 basis points (bps) to 65.9% on a 9.9% fall in gross profit to $4.86 billion. Adjusted operating margin contracted 454 bps year over year to 21.7%. The company reported worldwide revenue of $7.371 billion, a decrease of 8% as reported and 4% on an organic basis. The organic comparison excludes a $351 million negative impact from foreign currency translation and a $20 million contribution from the company’s recent acquisition of Intersect ENT, which is reported in the Specialty Therapies division in the Neuroscience Portfolio. The company’s first quarter organic revenue results reflect the impact of known supply chain shortages, as well as unfavorable comparisons to the prior year given last year’s strong ventilator sales and market procedure recovery following the third COVID-19 wave.

Moreover, first quarter U.S. revenue of $3.766 billion represented 51% of company revenue and decreased 8% as reported and 9% organic. Non-U.S. developed market revenue of $2.328 billion represented 32% of company revenue and decreased 10% as reported and increased 2% organic. Emerging Markets revenue of $1.276 billion represented 17% of company revenue and decreased 1% as reported and increased 2% organic.

MDT in the first quarter of FY 23 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share by 0.9%, according to the Zacks Consensus Estimate. The company had reported 8 percent decline in the adjusted revenue to $7.37 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue by 2.3%. Cardiovascular revenue of $2.713 billion decreased 6% as reported and 1% organic, with low-single digit declines in CRHF and CPV and flat year-over-year results in SHA, all on an organic basis.

The company continues to expect organic revenue growth in the band of 4-5% from fiscal 2022. Considering current foreign exchange rate, fiscal 2023 revenues are expected to be negatively impacted by $1.4 to $1.5 billion (compared to the prior expectation of $1.0-$1.1 billion impact). The Zacks Consensus Estimate for the company’s fiscal 2023 worldwide revenues is pegged at $31.97 billion.

Full-year adjusted EPS projection has also been maintained in the range of $5.53 to $5.65, including an estimated 17 to 22 cents negative impact from foreign exchange. The Zacks Consensus Estimate for the year’s adjusted earnings is $5.55.