This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Covidien Beats, Reaffirms Guidance

DUBLIN, Ireland ( TheStreet) -- Covidien (COV) shares jumped several points amid heavy trading Tuesday morning after the medical supplies maker beat quarterly expectations and reaffirmed its 2011 revenue guidance.

Covidien said strengthened demand for its medical devices helped drive results. A lower tax rate, less restructuring-related costs and strong sales of the company's vascular devices and patient monitoring products also helped the company's improved performance in the recent quarter.

Covidien booked a 3.6% increase in quarterly net profits to $427 million, or 86 cents per share, up from year-earlier earnings of $412 million, or 82 cents per share.

Revenue increased 5% to $2.77 billion, from $2.64 billion.

Excluding one-time gains related to inventory and restructuring charges, Covidien said it earned 95 cents per share from continuing operations, up from 84 cents per share in the first fiscal quarter last year.

Top- and bottom-line results beat analysts' consensus call for earnings of $403.1 million, or 81 cents per share, on revenue of $2.73 billion. Analysts typically exclude one-time items when forecasting estimates.

"Solid medical device sales results likely helped by continued strong performance of recent acquisitions more than offset some softness in the medical supplies business," noted Leerink Swann analyst Rick Wise.

Deutsche Bank analysts noted that results at Covidien's medical devices and pharmaceutical units were "very good," and the firm was "not concerned" about weakened performance at its medical supplies division.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BCR $167.14 -0.69%
BSX $16.76 -1.80%
COV $106.71 -1.26%
CFN $60.12 -0.13%
AAPL $129.36 0.21%


DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs