Covidien Q4 Profit Beats View on Strong Device Sales (COV)

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Healthcare products maker Covidien plc ( COV ) on Tuesday posted better-than-expected fourth quarter earnings, driven by higher sales of its medical devices.

The Dublin, Ireland-based company reported fiscal fourth quarter net income of $443 million, or 89 cents per share, compared with just $56 million, or 11 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 84 cents per share.

Revenue rose 3% from last year to $2.67 billion.

On average, Wall Street analysts expected a smaller profit of 74 cents per share, on slightly lower revenue of $2.64 billion.

Covidien shares rose $1.35, or +3.3%, in premarket trading Tuesday.

The Bottom Line
Shares of Covidien ( COV ) have a 1.93% dividend yield, based on last night's closing stock price of $41.35. The stock has technical support in the $37-$38 price area. If the shares can firm up, we see overhead resistance around the $44 price level.

Covidien plc ( COV ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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