Hospira Inc.'s (HSP) first-quarter earnings fell 14% on a
prior-year tax benefit, while revenue rose on strong sales in its
core businesses.
Results handily topped analysts' expectations, and the maker of
medical devices and injectable drugs also boosted its 2010 earnings
projection to $3.35 to $3.45 a share based on its first-quarter
results and the expected benefit from acquiring Orchid Chemicals
& Pharmaceuticals' generic injectable business. The company's
prior view was 10 cents lower.
Hospira, however, lowered projected revenue growth to 3% to 5%
from 6% to 8%.
The company said its latest sales again benefited from the
continued momentum in specialty injectable pharmaceuticals business
as well as by additional progress on the project fuel optimization
initiatives.
The company posted a profit of $141.7 million, or 84 cents a
share, down from $165.5 million, or $1.03 a share, a year earlier.
The latest quarter included 10 cents of charges and the prior year
had a $77.4 million income-tax benefit.
Revenue increased 17% to $1.01 billion.
Analysts surveyed by Thomson Reuters expected earnings of 72
cents on $916 million in revenue.
Gross margin rose to 42.7% from 37.2%.
Sales of specialty injectables--the company's biggest revenue
stream--jumped 45%. Medication management systems sales rose
4%.
Shares closed at $56 Monday and didn't trade premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com