The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Hospira met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased.
Gross margins shrank, operating margins dropped, net margins expanded.
Hospira chalked up revenue of $994.0 million. The 12 analysts polled by S&P Capital IQ expected to see a top line of $987.7 million on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $976.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.47. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS were $0.01 for Q3 versus -$0.54 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.6%, 970 basis points worse than the prior-year quarter. Operating margin was -0.7%, 960 basis points worse than the prior-year quarter. Net margin was 0.1%, 920 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $4.04 billion. The average EPS estimate is $2.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 128 members out of 155 rating the stock outperform, and 27 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Hospira a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hospira is hold, with an average price target of $35.50.
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