Covidien Earnings: Everything You Must Know Now

Covidien plc (NYSE:COV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Covidien plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.95% to $0.91 in the quarter versus EPS of $1.07 in the year-earlier quarter.

Revenue: Decreased 14.27% to $2.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Covidien plc reported adjusted EPS income of $0.91 per share. By that measure, the company beat the mean analyst estimate of $0.89. It missed the average revenue estimate of $2.58 billion.

Quoting Management: “We delivered a solid performance in the third quarter. Operational sales growth was in line with our expectations, but our reported sales growth was restrained by the strength of the U.S. dollar against most foreign currencies,” said José E. Almeida, Chairman, President and CEO. “In the Medical Devices segment, continued strong results in stapling and vessel sealing paced our quarterly performance.”

Key Stats (on next page)…

Revenue decreased 16.92% from $3.1 billion in the previous quarter. EPS decreased 1.09% from $0.92 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.13 to a profit $0.91. For the current year, the average estimate has moved down from a profit of $4.45 to a profit of $3.70 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]