Covidien (NYSE: COV) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q3), Covidien met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped.

Gross margins improved, operating margins contracted, net margins dropped.

Revenue details
Covidien logged revenue of $3.01 billion. The 17 analysts polled by S&P Capital IQ hoped for sales of $3.01 billion on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $2.93 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.07. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.06 per share. GAAP EPS of $0.93 for Q3 were 13% lower than the prior-year quarter's $1.07 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.8%, 70 basis points better than the prior-year quarter. Operating margin was 21.4%, 70 basis points worse than the prior-year quarter. Net margin was 15.1%, 320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.02 billion. On the bottom line, the average EPS estimate is $1.06.

Next year's average estimate for revenue is $11.88 billion. The average EPS estimate is $4.29.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covidien is buy, with an average price target of $63.22.