Hospira Inc.'s (HSP) fourth-quarter earnings fell 7.6% on
restructuring charges, but adjusted results rose and beat analysts'
estimates as revenue jumped 15%.
The maker of medical devices and injectable drugs also forecast
2010 earnings of $3.25 to $3.35 a share on revenue growth of 6% to
8% on an adjusted basis. Wall Street analysts polled by Thomson
Reuters expected a profit of $3.30 on 4% revenue growth.
Hospira said its sales again benefited from the new generic
version of Sanofi-Aventis SA's (SNY, SAN.FR) colon-cancer drug that
Hospira launched in the third quarter. Hospira in December said it
would pay $400 million to buy Orchid Chemicals &
Pharmaceuticals Ltd. (524372.BY), helping to expand its generic
injectable antibiotics operations.
Hospira reported a profit of $96.7 million, or 58 cents a share,
down from $104.6 million, or 65 cents, a year earlier. Excluding
items such as the write-downs, earnings rose to 87 cents from 78
cents. Revenue jumped 15% to $1.06 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 69 cents on $963 million in revenue.
Gross margin fell to 37.4% from 39%.
Sales of specialty injectables--the company's biggest revenue
stream--jumped 26%. Medical management systems sales rose 5.3%.
Shares closed at $51.81 Wednesday and were inactive premarket.
The stock has more than doubled the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;