UPDATE: Covidien FQ4 Profit Beats Estimates

Covidien plc COV reported better-than-expected results for its fiscal fourth quarter. The Dublin, Ireland-based company posted quarterly earnings of $517 million, or $1.13 per share, compared to $372 million, or $0.80 per share, in the year-ago period. Excluding certain items, the company's earnings from continuing operations rose to $1.15 per share from $0.91 per share. Its sales climbed 6.8% to $2.73 billion. However, analysts were expecting earnings of $1.02 per share on sales of $2.69 billion. The company's gross margin widened to 60.8% from 58.1%. Its operating income climbed to $513 million from $472 million. Sales of surgical products gained 11% to $1.33 billion in the quarter, while respiratory and patient-care sales surged 3% to $974 million. Vascular-therapies sales jumped 3% to $426 million. “We finished fiscal 2014 with an outstanding performance in the fourth quarter that greatly exceeded our expectations,” said José E. Almeida, chairman, president and CEO, Covidien. “Market share gains, strategic acquisitions, the successful launch of new products and productivity improvements all contributed to the achievement of double-digit earnings growth, both for the quarter and for the year.” Covidien shares fell 0.42% to close at $92.03 yesterday.