Covidien Beats Estimates for Q1 Earnings; Increases FY2013 Outlook (COV)

Covidien Beats Estimates for Q1 Earnings; Increases FY2013 Outlook (COV)

RSS

Healthcare product company, Covidien plc(COV) saw a decline in profits for their first quarter, but beat analysts estimates on Friday.

The Dublin, Ireland based company reported first quarter earnings of $493 million, or $1.03 per share, down from $494 million, or $1.02 per share last year. Excluding special items, earnings came in at $1.10 per share, down from $1.13 per share last year, but beating analysts estimate of $1.06 per share.

Revenue increased by 5% for the quarter, coming in at $3.06 billion, from $2.9 billion last year. Analysts expected $3 billion in revenue.

Included in the quarters sales was a 8% increase in Medical Devices sales. Growth in Endomechanical Instruments and Oximetry & Monitoring Products caused sales to reach $2.13 billion.

Although Pharmaceuticals sales remained flat for the quarter, coming in at $489 million, Medical Supplies sales rose 2% from Nursing Care product revenue.

Following the quarters results, COV reported that they are now expecting sales to grow by 5% to 8%, up from the previous estimates of a growth rate of 3% to 6%. Analysts are expecting to see sales of $12.39 billion.

Covidien shares were up $1.49, or 2.42% during premarket trading Friday. The stock has increased 28% in the past year.

The Bottom Line
Shares of Covidien plc (COV) have a 1.69% dividend yield, based on last night’s closing stock price of $61.67. The stock has technical support in the $56-$58 price area. The stock is trading at all-time highs.

Covidien plc(COV) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today