NEW YORK (TheStreet) -- Medtronic (MDT) shares are up 1.24% to $78.43 in afternoon trading on Tuesday after the medical device manufacturer reported preliminary fourth quarter earnings results before the opening bell today.
The company said that fourth quarter sales for the period ended April 24 were $7.3 billion, a 60% increase over the previous year, ahead of analysts' consensus $7.08 billion expectations for the quarter.
Additionally, the company said that its EPS would be in the upper half of its previously announced guidance between $1.08 and $1.13 per share. Analysts' are expecting earnings of $1.10 per share.
"As we look ahead to fiscal year 2016, we feel increasingly confident about our business outlook on an operational basis. However, foreign exchange continues to represent a significant headwind to many multinational companies, including Medtronic," CFO Gary Ellis said. "While recently the U.S. dollar has weakened, it is important to note that the foreign exchange rates in our fourth quarter were below the rates assumed in the outlook we forecast on our third-quarter earnings call in February."
Medtronic is scheduled to release its quarterly earnings report two weeks from today on June 2.
TheStreet Ratings team rates MEDTRONIC PLC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEDTRONIC PLC (MDT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, solid stock price performance, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."