Covidien (NYSE: COV ) is expected to report Q3 earnings on Aug. 1. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Covidien's revenues will shrink -14.2% and EPS will compress -15.9%.
The average estimate for revenue is $2.58 billion. On the bottom line, the average EPS estimate is $0.90.
Last quarter, Covidien notched revenue of $3.10 billion. GAAP reported sales were 5.3% higher than the prior-year quarter's $2.95 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $1.12. GAAP EPS of $0.93 for Q2 were 8.8% lower than the prior-year quarter's $1.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 57.6%, 50 basis points worse than the prior-year quarter. Operating margin was 21.2%, 20 basis points worse than the prior-year quarter. Net margin was 14.1%, 280 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $10.28 billion. The average EPS estimate is $3.70.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covidien is outperform, with an average price target of $70.15.
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