Medtronic PLC reported that comparable revenue grew 7% in the April quarter, the first that included results from its $43 billion acquisition of Covidien PLC.
Shares, which increased about 6% this year through Monday's close, were up about 1.69% in light premarket trading.
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For the full year, the company expects per-share earnings of $4.30 to $4.40, compared with analysts' estimates of $4.45. The estimate includes a 40- to 50-cent impact from foreign exchange, 10 cents more than estimated in February.
The Covidien deal, which combined two of the world's largest surgical-implant and hospital-supply companies, closed in late January after drawing scrutiny over a tax-lowering tactic criticized by U.S. government officials. The acquisition involved Medtronic reincorporating from Minneapolis to Dublin, a so-called inversion deal that lowers the company's tax burden.
In the latest quarter, the minimally invasive therapies group, which was formerly known as the Covidien Group, had sales of $2.39 billion, up 6%.
Overall, Medtronic reported a loss of $1 million, or less than one cent a share, down from a profit of $448 million, or 44 cents a share, a year ago.
Excluding special items, earnings were $1.16 a share, beating analyst estimates of $1.11 a share.
On a comparable, constant currency basis—which includes Covidien in the year-earlier results—revenue grew to $7.3 billion from $7.26. This number also adjusts for a $483 million negative foreign-currency impact.
On a reported basis, excluding these items, revenue grew to grew to $7.3 billion from $4.57 billion a year earlier.
Analysts had expected revenue of $7.19 billion.
In the latest quarter, revenue from Medtronic's cardio and vascular group segment was $2.6 billion, an increase of 10% on a comparable basis. Revenue from the restorative therapies group rose 5% on a comparable basis to $1.85 billion, driven by growth in surgical technologies and neuromodulation, though partially offset by declines in the spine segment. Sales in the diabetes group grew 8% on a comparable basis to $467 million.