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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Covidien plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.67% to $1.12 in the quarter versus EPS of $1.05 in the year-earlier quarter.

Revenue: Rose 5.33% to $3.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Covidien plc reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1.09. It missed the average revenue estimate of $3.12 billion.

Quoting Management: “Our second-quarter performance was paced by broad-based top-line growth and an increase in earnings per share,” said José E. Almeida, Chairman, President and CEO. “Once again, in our Medical Devices segment, strong results in stapling, vessel sealing and neurovascular products were the key drivers of our growth. We also delivered a significant sales increase in Pharmaceuticals, led by the excellent performance of both generic and branded products.”

Key Stats (on next page)…

Revenue increased 1.54% from $3.06 billion in the previous quarter. EPS increased 1.82% from $1.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.14 to a profit $1.15. For the current year, the average estimate has moved up from a profit of $4.43 to a profit of $4.49 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] wallstcheatsheet.com)