The 10-second takeaway
For the quarter ended Dec. 31 (Q2), CareFusion met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and GAAP earnings per share grew significantly.
Margins increased across the board.
CareFusion logged revenue of $915 million. The 10 analysts polled by S&P Capital IQ foresaw net sales of $912.3 million. Sales were 8.7% lower than the prior-year quarter's $1 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.44. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.43 per share on the same basis. GAAP EPS of $0.42 for Q2 were 24% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 49.9%, 250 basis points better than the prior-year quarter. Operating margin was 16.4%, 120 basis points better than the prior-year quarter. Net margin was 10.4%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $893.5 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $3.65 billion. The average EPS estimate is $1.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 76 members rating the stock outperform and five members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give CareFusion a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CareFusion is outperform, with an average price target of $29.08.
The healthcare investing landscape is littered with also-rans and a few major winners. Is CareFusion the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add CareFusion to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.