Hospira Beats by a Penny, Backs View - Analyst Blog
01 Maio 2012 - 11:05AM
Zacks
Hospira Inc.’s (HSP) first quarter 2012
earnings (excluding special items) of 47 cents per share edged past
the Zacks Consensus Estimate of 46 cents. However, earnings fell
short of the year-ago figure by 49.5%.
Earnings during the quarter were hurt by lower revenues and
higher costs. On a reported basis (including special items), the
company earned 24 cents per share, down 72.7%.
The Lake Forest, Illinois-based company came up with revenues of
$966 million in the reported quarter, comfortably beating the Zacks
Consensus Estimate of $951 million. Revenues were, however, 3.6%
lower than the year-ago figure of $1.0 billion. Earnings continued
to be impacted by the slowdown in production at the company’s
facility in Rocky Mountain, North Carolina.
Quarter in Detail
The Specialty Injectable Pharmaceuticals (SIP) business, the
biggest contributor to Hospira’s revenues, performed
disappointingly in the quarter with sales from the segment
declining 8.2% to $586.4 million. This segment includes generic
injectables as well as proprietary specialty injectables. The SIP
unit includes drugs such as the generic version of
Sanofi’s (SNY) oncology therapy Taxotere.
Sales in the Medication Management (MMS) segment climbed 6.7% to
$256.2 million. Sales in the Other Pharma division were flat at
$123.3 million.
Geographically, the Americas, Europe, Middle East and Africa
(EMEA) and the Asia-Pacific (APAC) markets contributed $770.3
million (down 4.8%), $127.9 million (up 6.6%) and $67.7 million
(down 7.8%), respectively, to total revenues in the reported
quarter.
2012 Outlook
Apart from announcing financial results, Hospira reaffirmed its
guidance for 2012. The company continues to expect top-line growth
in the range of -1% to 2% on a constant currency basis. Foreign
exchange is expected to negatively impact the top line by 1%.
The company expects adjusted earnings in the range of
$2.00–$2.30 per share. The Zacks Consensus Estimate of $2.17 is
well within the company’s guidance range.
Hospira expects cash flow from operations in the range of $575
-$625 million in 2012. Capital expenditures are expected in
the range of $350 -$400 million. Depreciation and amortization is
expected in the range of $240-$260 million.
Our Recommendation
We currently have a Neutral recommendation on Hospira. The stock
carries a Zacks #3 Rank (Hold rating) in the short-run.
HOSPIRA INC (HSP): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
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