Healthcare product company, Covidien plc(COV) saw a decline in profits for their first quarter, but beat analysts estimates on Friday.
The Dublin, Ireland based company reported first quarter earnings of $493 million, or $1.03 per share, down from $494 million, or $1.02 per share last year. Excluding special items, earnings came in at $1.10 per share, down from $1.13 per share last year, but beating analysts estimate of $1.06 per share.
Revenue increased by 5% for the quarter, coming in at $3.06 billion, from $2.9 billion last year. Analysts expected $3 billion in revenue.
Included in the quarters sales was a 8% increase in Medical Devices sales. Growth in Endomechanical Instruments and Oximetry & Monitoring Products caused sales to reach $2.13 billion.
Although Pharmaceuticals sales remained flat for the quarter, coming in at $489 million, Medical Supplies sales rose 2% from Nursing Care product revenue.
Following the quarters results, COV reported that they are now expecting sales to grow by 5% to 8%, up from the previous estimates of a growth rate of 3% to 6%. Analysts are expecting to see sales of $12.39 billion.
Covidien shares were up $1.49, or 2.42% during premarket trading Friday. The stock has increased 28% in the past year.
The Bottom Line
Shares of Covidien plc (COV) have a 1.69% dividend yield, based on last night’s closing stock price of $61.67. The stock has technical support in the $56-$58 price area. The stock is trading at all-time highs.
Covidien plc(COV) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.