Medtronic on Tuesday projected $7.3 billion in revenue for the fourth quarter of 2015, marking the company's first results since its acquisition of Covidien in January.
The results for the fourth quarter ended April 24 mark a 7% increase over the same period in 2014 on a comparable basis, which factors in last year's results from Covidien as well as the negative effect from foreign currency rates.
Its preliminary reported sales caused the company to readjust expectation of earnings per share for the fourth quarter in order to be in the upper half of its previously forecasted range of $1.08 to $1.13.
“I am very encouraged by our strong preliminary fourth-quarter revenue performance especially as it is the first quarter that reflects the combined results of Medtronic and Covidien,” Medtronic Chairman and CEO Omar Ishrak said in a released statement. “In addition to making solid progress on our integration of Covidien, these preliminary revenue results reflect disciplined execution across our three core strategies of therapy innovation, globalization and economic value.”
Revenue for fiscal 2015 reached $20.2 billion, according to the company, a 6% increase over 2014 based on a comparable, constant currency basis.
Medtronic's performance for the quarter was largely driven by strong sales within its cardiac and vascular device division, which rose 10% over the previous year to $2.6 billion.
The company noted that full financial results for the quarter would be released June 2.
“As we look ahead to fiscal year 2016, we feel increasingly confident about our business outlook on an operational basis,” Medtronic Chief Financial Officer Gary Ellis said in a released statement.
Medtronic completed the purchase of surgical-device maker Covidien on Jan. 26 in a deal valued at $9 billion. That prompted moving Medtronic's headquarters from Minnesota to Dublin, Ireland, allowing the company to take advantage of more favorable corporate tax rates.
Shares of Medtronic were up 1.32% by early Tuesday afternoon to $78.49.