Hospira Beats Zacks Estimates - Analyst Blog
01 Agosto 2012 - 9:21AM
Zacks
Hospira Inc.’s (HSP) second-quarter 2012
earnings (excluding special items) of 51 cents per share beat the
Zacks Consensus Estimate of 49 cents. However, earnings fell short
of the year-ago figure by 45.7%.
The reported quarter’s earnings were hurt by lower revenues and
higher costs. On a reported basis (including special items), the
company suffered a loss of 2 cents per share as opposed to the
year-ago earnings of 85 cents.
The Lake Forest, Illinois-based company came up with revenues of
$1.0 billion in the reported quarter, beating the Zacks
Consensus Estimate of $986 million. Revenues were, however, 2.9%
lower than the year-ago figure due to adverse foreign currency
movements and the slowdown in production at the company’s facility
in Rocky Mountain, North Carolina.
Quarter in Details
The Specialty Injectable Pharmaceuticals (SIP) business, the
biggest contributor to Hospira’s revenues, performed
disappointingly in the quarter with sales from the segment
declining 4.6% (down 1.7% at constant currency) to $644.2 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 3.5%
(up 5.7% at constant currency) to $255.1 million. Sales in the
Other Pharma division declined 5.9% (down 4.4% at constant
currency) to $134.0 million.
Geographically, the Americas, Europe, Middle East and Africa
(EMEA) and the Asia-Pacific (APAC) markets contributed $810.3
million (down 2.9% at constant currency), $135.3 million (up 11.0%
at constant currency) and $87.7 million (up 6.5% at constant
currency), respectively, to total revenue in the reported
quarter.
2012 Outlook
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 to 2%. The company
expects 2012 adjusted earnings at the low end of the projected
range of $2.00–$2.30 per share. The Zacks Consensus Estimate for
2012 currently stands at $2.11 per share.
Hospira now expects cash flow from operations in the range of
$475-$525 million (previous guidance: $575-$625 million) in
2012. The company continues to expect capital expenditures in
the range of $350-$400 million. Depreciation and amortization
continues to be projected in the range of $240-$260 million.
Our Recommendation
We currently have a Neutral recommendation on Hospira. The stock
carries a Zacks #4 Rank (Sell rating) in the short run.
HOSPIRA INC (HSP): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
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