Medtronic has reported revenue of $4.27 billion during the three months ended July 25, an increase of 4 percent over the same period last year. U.S. sales were particularly strong at $2.33 billion, up 6 percent from last year and higher than analysts had expected, according to The Wall Street Journal.
"Our first quarter results are a solid start to fiscal year 2015," said Omar Ishrak, Medtronic chairman and CEO. "Our growth was broad based across businesses and geographies. I was especially pleased that our innovation pipeline is delivering strong results, particularly in the U.S., which had its highest revenue growth performance in five years."
The earnings report is the first after Medtronic announced it had entered into a definitive agreement to acquire rival Covidien for $42.9 billion. After the deal closes, Medtronic will have 87,000 employees, a market presence in more than 150 countries and annual revenue of about $27 billion.
As part of the transaction, Medtronic will reincorporate in Ireland, and its principle executive offices will be in Covidien's home base of Dublin. The move will allow Medtronic to pay less in corporate taxes, according to a report in The New York Times. Such tax inversion arrangements have recently come under scrutiny by U.S. lawmakers.
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