Buoyed by its acquisition of Covidien, Medtronic’s revenue increased 6 percent in the fourth quarter of fiscal year 2016 and increased 7 percent for the fiscal year on a comparable, constant currency basis, the company announced on May 31.
Medtronic’s fiscal year 2016 ended on April 29. It was the first full year since Medtronic acquired Covidien in January 2015 for $50 billion.
Medtronic’s revenue was $7.567 billion for the fourth quarter and $28.833 billion for the year, while its diluted earnings per share increased slightly to $0.78 and $2.48, respectively.
The company earnings and revenue beat Wall Street analysts’ expectations. Medtronic’s shares were down approximately 1.65 percent to $80.35 per share as of 10:45 a.m. Eastern Time on May 31, less than three hours after the company released its results.
In the cardiac and vascular group, fourth quarter revenue increased 8 percent to $2.376 billion, including a 9 percent increase in the cardiac rhythm and heart failure division, a 7 percent increase in the coronary and structural heart division and an 8 percent increase in the aortic and peripheral vascular division.
During the quarter, Medtronic launched the Amplia MRI Quad CRT-D SureScan and the Compia MRI Quad CRT-D SureScan systems, the first MRI conditional cardiac resynchronization therapy defibrillators to treat patients with heart failure and reduce the risk of sudden cardiac arrest.
The company also had a 6 percent revenue growth in its minimally invasive therapies group, a 3 percent revenue increase in its restorative therapies group and a 10 percent revenue increase in its diabetes group.
For fiscal year 2017, Medtronic expects revenue growth of 5 percent to 6 percent and diluted earnings per share growth of 12 percent to 16 percent.