Covidien Earnings Preview: Can This Streak Continue?

Covidien (NYSE:COV) will report earnings before markets open on Friday, April 26th. Covidien PLC is a global healthcare products company. The Company develops, manufactures and distributes a diverse range of medical devices and supplies, diagnostics imaging agents, pharmaceuticals and other healthcare products for use in clinical and home settings.

Here is your Cheat Sheet to Covidien Earnings:

Earnings Expectations: Analysts expect earnings of $1.09 per share on revenues of $3.12 billion. Currently, the company’s P/E ratio stands at 16.91.

Analyst Trends:

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 is a profit of $4.49, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Covidien has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 9,910 10,260 10,430 11,570 11,850
Diluted EPS ($) 2.70 1.79 3.24 3.76 3.92

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 2,898 2,946 3,007 3,001 3,056
Diluted EPS ($) 1.02 1.02 0.93 0.95 1.03

Past Performance:
Covidien has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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