The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hospira beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Hospira logged revenue of $1.01 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $949.0 million on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $992.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.47 per share on the same basis. GAAP EPS were -$1.30 for Q4 against $0.36 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 27.7%, 810 basis points worse than the prior-year quarter. Operating margin was 4.7%, 410 basis points worse than the prior-year quarter. Net margin was -21.1%, 2,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $922.7 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $3.91 billion. The average EPS estimate is $2.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 134 members out of 164 rating the stock outperform, and 30 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 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 $33.67.
The drug and healthcare investing landscape is littered with also-rans and a few major winners. Is Hospira 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 Hospira 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.