Covidien Earnings: Profit Rises

Covidien plc (NYSE:COV) reported higher profit for the fourth quarter as revenue showed growth. Covidien is engaged in the development, manufacture, and sale of healthcare products for use in clinical and home settings. It operates its businesses through three segments: medical devices, pharmaceuticals, and medical supplies.

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Covidien plc Earnings Cheat Sheet

Results: Net income for Covidien plc rose to $461 million (95 cents per share) vs. $451 million (92 cents per share) in the same quarter a year earlier. This marks a rise of 2.2% from the year-earlier quarter.

Revenue: Fell 2.5% to $3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Covidien plc reported adjusted net income of $1.02 per share. By that measure, the company beat the mean estimate of $1 per share. Analysts were expecting revenue of $3.01 billion.

Quoting Management: “We delivered a solid performance in the fourth quarter, finishing 2012 in line with our expectations. Reported results were restrained by the strength of the U.S. dollar against most foreign currencies and by the anomaly of an extra selling week in the fourth quarter of 2011,” said Jos E. Almeida, Chairman, President and CEO.

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 15.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by 2 cents in the second quarter, and by 10 cents in the first quarter.

Net income has increased 2.7% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 15.7% from the year-earlier quarter.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached $1.08 per share, up from $1.07. At $4.24 per share, the average estimate for the fiscal year has fallen from $4.27 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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