Sometimes healthcare is like real estate and success is all about location. For most of the past decade, Covidien's (COV) strengths were not seen as especially valuable - investors wanted the hot growth stories in stents, ICDs, and orthopedic implants, not a company that makes staplers and vessel sealers. Now, though, Covidien is the med-tech name that is showing good growth and the former winners are struggling to follow.
A Solid Start To The Fiscal Year
Covidien reported organic revenue growth of nearly 5% for the fiscal year; not only beating the analysts' guesses, but showing some acceleration from recent trends. The company reported 6% top-line growth from devices, about 4% growth in the pharmaceuticals division, and basically no growth in supplies. Relative to expectations, devices and drugs were surprisingly strong, while supplies were weak.
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Covidien Plays To Its Strengths And Still Looks Undervalued
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