The 10-second takeaway
For the quarter ended Dec. 28 (Q1), Covidien beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Margins dropped across the board.
Covidien reported revenue of $3.06 billion. The 16 analysts polled by S&P Capital IQ expected a top line of $3.00 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $2.90 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.10. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.06 per share. GAAP EPS of $1.03 for Q1 were 1.0% higher 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 quarter, gross margin was 57.5%, 130 basis points worse than the prior-year quarter. Operating margin was 21.8%, 240 basis points worse than the prior-year quarter. Net margin was 16.1%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.11 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $12.55 billion. The average EPS estimate is $4.49.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covidien is outperform, with an average price target of $64.74.
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