Covidien Q3 Net Profit Slips - Quick Facts

(RTTNews) - Irish healthcare products company Covidien plc (COV) reported a drop in third-quarter net income to $396 million, or $0.84 a share, from the prior year's $453 million, or $0.93 a share. However, GAAP earnings from continuing operations were $400 million, or $0.85 a share in the quarter, higher than $395 million, or $0.81 a share in the comparable quarter a year ago.

In the third quarter of fiscal 2013, adjusted earnings per share from continuing operations before items were $0.91, unchanged from last year. On average, 18 analysts polled by Thomson Reuters expected earnings per share of $0.89 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly net sales reached $2.58 billion, up 3% from the prior-year figure of $2.51 billion, whereas 16 analysts estimated revenues of $2.58 billion for the quarter. Foreign exchange rate movement lowered the quarterly sales growth rate by two percentage points, the company added. The Pharmaceuticals business, which was spun off from Covidien on June 28, 2013, is reported in discontinued operations.

Commenting on the results, Covidien's President and Chief Executive said, "Operational sales growth was in line with our expectations, but our reported sales growth was restrained by the strength of the U.S. dollar against most foreign currencies."