Heart device sales responsible for strong Medtronic profit

According to news agency Reuters, medical device manufacturer Medtronic reported an adjusted quarterly net income that surpassed estimations, helped by the sales of its heart devices.

In the fourth quarter, cardiac and vascular sales, including the company’s sales of defibrillators, pacemakers, heart valves and stents, rose by 10 percent to $2.6 billion.

These results are the first to include revenue generated by Covidien, which Medtronic acquired in January for $49.9 billion.

Medtronic announced recently that revenue from its minimally invasive therapies group, which is acquired as part of the Covidien deal, increased by 6 percent to $2.38 billion.

The strong performance was largely driven by sales of surgical devices and patient monitoring units, the company said.

This performance was mainly driven by sales of surgical devices and patient monitoring units, the company said. 

It is thought that the acquisition is likely to develop operational efficiency by offering various healthcare and diagnostic products and services as a package to their customers.

On a reported basis, Medtronic's net loss was $1 million in the quarter that ended on April 25 and the company’s adjusted net profit rose to $1.68 billion, which is $1.16 per share.

In the Reuters article, it was stated that revenue rose by 7 percent to $7.30 billion, in line with the preliminary estimate the company announced in May.

The company, which reaffirmed its 2016 outlook, said recently that revenue was adjusted for a $483 million hit from the strong dollar.

The company recently said that revenue was adjusted for a $483 million hit from the strong dollar, analysts had expected net income of $1.11 per share on revenue of $7.19 billion.