For the second quarter of fiscal year 2016, Medtronic’s revenue increased 6 percent and its net income decreased 37 percent compared with the same period last year. Results were released on Dec. 3.
Medtronic said in a news release that the lower earnings were expected and primarily due to a non-recurring tax adjustment related to integrating Covidien into the company. In January, Medtronic acquired Covidien in a cash-and-stock deal worth nearly $50 billion.
For the third and fourth quarters of fiscal year 2016, Medtronic said it expects revenue to grow in the upper-half of the mid-single digit range, higher than it had previously thought. The company also anticipates diluted non-GAAP earnings per share to be between $4.33 and $4.40 for the fiscal year.
Revenue in the second quarter increased 8 percent in Medtronic’s Cardiac and Vascular group, 3 percent in its Minimally Invasive Therapies group, 5 percent in its Restorative Therapies group and 11 percent in its Diabetes group.
During the quarter, Medtronic launched the Evera MRI implantable cardioverter defibrillator in the U.S. and the Micra Transcatheter Pacing System in Europe. It was also the first full quarter for the CoreValve Evolut R, which the FDA approved on June 23 for transcatheter aortic valve replacement procedures. All three products are in the company’s Cardiac and Vascular group.
Covidien's old business is now in Medtronic's Minimally Invasive Therapies group. The results of that group included the acquisition of RF Surgical, which closed during the second quarter.