Covidien plc Earnings: Here’s Why the Stock is Lighting Up Now

Covidien plc (NYSE:COV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.46%.

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Covidien plc Earnings Cheat Sheet

Results: Net income decreased -0.2% to $493 million ($1.1 per diluted share) in the quarter versus a net gain of $494 million in the year-earlier quarter.

Revenue: Rose 5.59% to $3.06 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Covidien plc reported adjusted net income of $1.1 per share. By that measure, the company beat the mean analyst estimate of $1.06. It beat the average revenue estimate of $3 billion.

Quoting Management: José E. Almeida, Chairman, President and CEO said, “In our large Medical Devices segment, we continued to generate above-market growth in a number of key categories, including stapling, energy, airway and ventilation. We delivered very strong growth in emerging markets, as we realized the benefits of our recent substantial investments in these fast-growing regions.”

Key Stats:

Revenue increased 1.97% from $3 billion in the previous quarter. Net income increased 6.94% from $461 million 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 $1.07 to a profit $1.06. For the current year, the average estimate is a profit of $4.42, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)