Covidien Ltd. Fourth Quarter Earnings Sneak Peek

Covidien Ltd. (COV) will unveil its latest earnings on Tuesday, November 15, 2011. 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 profit of $1.05 per share, a rise of 25% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.04. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.05 during the last month. For the year, analysts are projecting net income of $3.94 per share, a rise of 16.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting profit of $1.01 per share against a mean estimate of net income of 95 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.03 billion in revenue this quarter, a rise of 13.5% from the year ago quarter. Analysts are forecasting total revenue of $11.52 billion for the year, a rise of 10.5% from last year’s revenue of $10.43 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 third quarter, profit rose 47% to $535 million ($1.07 a share) from $364 million (72 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.1% to $2.93 billion from $2.56 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 10.2% in the second quarter and 3.6% in the first quarter.

Revenue has gone up for three straight quarters. It rose 5.2% in the second quarter from the year earlier and 0.7% in the first quarter.

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 August 16, 2011 to November 9, 2011, the stock price had fallen $4.61 (-9.3%) from $49.65 to $45.04. 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 July 29, 2011 and August 8, 2011 when shares fell for seven-straight days, falling 13.2% (-$6.69) over that span. Shares are up 14 cents (+0.3%) year to date.

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

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

 

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