Update: Covidien performs well under Medtronic management

Update: Covidien performs well under Medtronic managementMedtronic recorded USD 7.3 billion revenue for the first quarter of 2015, which also includes Covidien’s three months revenue. The total amount was around USD 230 million higher than the forecasted value. This amount is 60 percent higher than what Medtronic alone earned in the same quarter yesteryear. After Covidien’s acquisition, Medtronic’s move of judicial residence to Ireland from Minnesota gave Medtronic flexibility to use its free cash flow, because the US has provisions of 35% tax on less income corporate profits. Medtronic can now use the free cash for future acquisitions, share buybacks and dividends. Analysts are expecting Medtronic to report earnings of USD 1.11 per share for the quarter ended April 2015 while USD 4.39 for the year. Medtronic is now focusing on emerging countries as they can offer sustainable market growth with a double-digit growth rate.

 

 

(Image Courtesy: Medtronic-Covidien)

Read the full article at Star Tribune

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