The Fridley, Minn.-based medical device giant posted profits of $828 million, or 83¢ per share, on sales of $4.37 billion for the 3 months ended Oct. 24. Adjusted to exclude 1-time items, earnings per share were 96¢, in line with expectations on Wall Street, where analysts were also looking for revenues of $4.37 billion.
"Our second quarter performance was strong and well balanced across our businesses and geographies," said Omar Ishrak, Medtronic chairman and chief executive officer. "Revenue growth was at the upper end of our full-year revenue outlook and within our mid-single digit baseline goal, reflecting the strong execution of our global organization," chairman & CEO Omar Ishrak said in prepared remarks. "We believe the Covidien acquisition, which remains on schedule to close in early calendar year 2015, will meaningfully accelerate all three of these strategies, strengthen our long-term market competitiveness, and drive further sustainability and consistency in our long-term financial performance. The Medtronic and Covidien combination provides an even greater opportunity for us to truly address the universal needs of healthcare: improving clinical outcomes, expanding access, and optimizing cost and efficiency for healthcare systems around the world."
Medtronic raised the low end of its revenue forecast for the rest of fiscal 2015, saying it now expects revenue growth of 4% to 5%, up from prior guidance of 3% to 5%. The company reiterated its outlook on earnings, saying it still expects to report adjusted EPS of $4.00 to $4.10.