(Corrects first paragraph to clarify the quarter was the first to include Covidien revenue)

By Susan Kelly and Amrutha Penumudi

June 2 (Reuters) - Medical device maker Medtronic Plc reported better-than-expected adjusted quarterly profit on higher sales across its business lines in the first quarter to include revenue from the acquisition of surgical products provider Covidien Plc.

The company, which had announced preliminary fourth-quarter revenue in May, on Tuesday also gave a fiscal 2016 profit outlook that was below analysts' expectations, citing a greater impact from the strong U.S. dollar than the company previously estimated.

Wall Street shrugged off the currency hit, with Medtronic's shares edging slightly higher to $76.72 in midday trading.

"It's more of a foreign currency issue and not an operational issue, so people will view the guidance as in line," said Edward Jones analyst Jeff Windau. "Overall it looks like the product portfolio is doing well and they are doing a nice job integrating the Covidien business."

The company has introduced several new products, including the Reveal Linq insertable heart monitor and a less-invasive replacement heart valve called CoreValve, that have helped accelerate sales growth.

"We've had a convergence of new product launches in the last 12 months that we haven't had for a long time," Medtronic Chief Executive Omar Ishrak said in an interview.

Demand for medical procedures is also picking up in general as the economy improves, Ishrak said.

Sales in the cardiac and vascular sector, where the company sells defibrillators, pace-makers, heart valves and stents, rose 10 percent to $2.6 billion in the fourth quarter.

Revenue from the minimally invasive therapies group, which Medtronic acquired as part of the Covidien deal, increased 6 percent to $2.39 billion. Sales of surgical devices and patient monitoring units drove growth in the unit, the company said.

Medtronic's net loss was $1 million in the fourth quarter ended April 25.

The company's adjusted profit rose to $1.68 billion, or $1.16 per share.

Revenue rose 7 percent to $7.3 billion, in line with the preliminary estimate the company announced in May. Medtronic said on Tuesday revenue was adjusted for a $483 million hit from the strong dollar.

Analysts on average had expected income of $1.11 per share on revenue of $7.19 billion.

For the year ahead, Medtronic forecast earnings in the range of $4.30 to $4.40 a share, including an expected impact from foreign currency of 40 to 50 cents. The foreign currency hit is 10 cents more than the company had earlier projected.

Analysts on average had been looking for 2016 earnings of $4.45 a share, according to Thomson Reuters I/B/E/S.

Medtronic bought Ireland-based Covidien in January for $49.9 billion in a so-called inversion deal that reduced its global tax burden.

(Reporting by Susan Kelly in Chicago and Amrutha Penumudi in Bengaluru; Editing by Sriraj Kalluvila and Dan Grebler)