Medtronic Incorporated (MDT.N) reported quarterly overall profit that is hitting previous analyst expectations. The company’s performance was significantly helped by their new heart device sales, added with the company’s recent $42.9B purchase of Covidien PLC, a hospital products manufacturer.
Recent changes in tax rules in the U.S. that are aimed to slow acquisitions involving tax inversion is causing some investors in questioning whether the recent deal would be closed as such companies like AbbVie Inc and Shire PLC recently dropped their merger plans.
But, executives of Medtronic Incorporated stated that they will stay fully committed in purchasing Covidien, and is focusing on plans of integration.
During an interview, Gary Ellis, Medtronic’s Chief Financial stated that the company changed their financial procedures, but didn’t change their plan in pushing through with the Covidien deal. Ellis added that the new rules didn’t affect Medtronic as much compared to other competitor companies.
Medtronic Incorporated, the biggest medical stand-alone device manufacturer, stated last Tuesday that their second-quarter overall net earnings decreased to $828M, equivalent to 83 cents for every share, from last year’s $902M, equivalent to 89 cents for every share.
Not including the costs of the acquisition of Covidien and charitable donations, Medtronic Incorporated earned a total of 96 cents for every share, which is generally close to analyst forecast averages.
Overall revenue increased to 4%, amounting to $4.37B which was pushed by the company’s new line of products that includes the Reveal, and also the CoreValve replacement heart valve, a miniature diagnostic monitor that is implantable in the heart.