DUBLIN, Ireland (
beat profit and revenue expectations on stronger sales of its medical devices.
Covidien said early Tuesday it booked a 47% increase in third-quarter earnings to $535 million, or $1.07 a share, compared with year-earlier earnings of $364 million, or 72 cents a share. Excluding one-time items, earnings came to $1.01 a share. Net revenue grew 14% to $2.93 billion.
Analysts had expected Covidien to earn 95 cents a share on revenue of $2.86 billion.
Covidien, which makes surgical products, drugs and medical supplies, said its medical device division posted a 22% jump in sales to $1.99 billion. Its pharmaceutical unit saw revenue fall 1% to $500 million as sales of branded specialty drugs were slower.
Shares of Covidien rose 5.3% in premarket trading Tuesday after the stock closed lower at $50.25 in Monday's session.
Medical device and drug maker
Johnson & Johnson
beat earnings expectations last week and said its pharmaceutical division continued to reinvigorate its growth profile.
In its recent quarter, J&J's pharma division saw sales increase by 12.3% to $6.23 billion. J&J pharmaceutical unit competes with other major drugmakers such as
J&J also saw sales gains in its other two divisions, medical devices and consumer products, the latter of which suffered a series of embarrassing
product recalls for popular medicines like Tylenol, Motrin and Rolaids
J&J's medical devices unit, where it competed with
in the stent market before closing down those operations, but still competes with orthopedic replacement makers
, saw a sales increase of 7.2% to $6.57 billion.
Because of its wide range of diversification within the health care, biotechnology and drug sectors, J&J is widely considered an industry bellwether.
>>For upcoming earnings and estimates, see our
Written by Miriam Marcus Reimer in New York.
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