By Chelsey Dulaney
Medtronic PLC said Tuesday that it expects earnings in its April
quarter to come in at the top end of its previous guidance, while
the medical-device maker also reported a slight uptick in revenue
for the period.
Medtronic's fiscal-fourth quarter, which ended April 24, was the
first that included results from its $43 billion acquisition of
Covidien PLC.
The deal, which combined two of the world's largest
surgical-implant and hospital-supply companies, closed in late
January after drawing scrutiny over a tax-lowering tactic
criticized by U.S. government officials. The acquisition involved
Medtronic reincorporating from Minneapolis to Dublin, a so-called
inversion deal that lowers the company's tax burden.
Overall for the quarter, Medtronic said its preliminary revenue
edged up to $7.3 billion from $7.26 billion a year earlier on a
comparable basis. Excluding a $482 million currency impact, revenue
would have been up 7%.
Analysts polled by Thomson Reuters had recently forecast $7.08
billion in revenue.
In the U.S., revenue grew 8% on a comparable basis.
Based on its sales performance in the quarter, Medtronic said it
expects earnings to come in at the upper half of its range of $1.08
to $1.13 a share, excluding special items.
Analysts had forecast per-share earnings of $1.10.
Still, the company warned that currency fluctuations remain a
headwind, and foreign exchange rates were lower than it had
initially forecast in February.
The company expects to report full results for the quarter and
give guidance for its newly-started fiscal year on June 2.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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