Covidien Ltd. First Quarter Earnings Sneak Peek

Covidien Ltd. (NYSE:COV) will unveil its latest earnings on Thursday, January 26, 2012. 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.

Covidien Ltd. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.03 per share, a rise of 8.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.04. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 7.6% versus last year to $4.27.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of $1.08 per share against a mean estimate of net income of $1.05 per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.92 billion in revenue this quarter, a rise of 5.4% from the year ago quarter. Analysts are forecasting total revenue of $11.89 billion for the year, a rise of 2.8% from last year’s revenue of $11.57 billion.

Analyst Ratings: Analysts are bullish on this stock with 18 analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 1.8% to $451 million (92 cents a share) from $443 million (88 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 15.3% to $3.08 billion from $2.67 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 47% in the third quarter of the last fiscal year and 10.2% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 14.1% in the third quarter of the last fiscal year from the year earlier, climbed 5.2% in the second quarter of the last fiscal year from the year-ago quarter and 0.7% in the first quarter of the last fiscal year.

Competitors to Watch: C.R. Bard, Inc. (NYSE:BCR), Teleflex Incorporated (NYSE:TFX), Becton, Dickinson and Co. (NYSE:BDX), Baxter International Inc. (NYSE:BAX), Angiotech Pharmaceuticals, Inc. (NASDAQ:ANPI), CareFusion Corporation (NYSE:CFN), CONMED Corporation (NASDAQ:CNMD), AngioDynamics, Inc. (NASDAQ:ANGO), and Masimo Corporation (NASDAQ:MASI).

Stock Price Performance: During December 20, 2011 to January 20, 2012, the stock price had risen $3.67 (8.3%) from $44.37 to $48.04. The stock price saw one of its best stretches over the last year between April 18, 2011 and April 27, 2011 when shares rose for seven-straight days, rising 7.3% (+$3.79) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight-straight days, falling 11% (-$5.28) over that span.

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

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