The 10-second takeaway
For the quarter ended March 31 (Q1), Hospira beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Hospira reported revenue of $965.9 million. The 11 analysts polled by S&P Capital IQ wanted to see net sales of $949.6 million on the same basis. GAAP reported sales were 3.6% lower than the prior-year quarter's $1.00 billion.
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 averaged $0.46 per share. GAAP EPS of $0.24 for Q1 were 73% lower than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 930 basis points worse than the prior-year quarter. Operating margin was 4.8%, 1,360 basis points worse than the prior-year quarter. Net margin was 4.2%, 1,080 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $989.7 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $4.00 billion. The average EPS estimate is $2.20.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 131 members out of 165 rating the stock outperform, and 34 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Hospira a green thumbs-up, and nine 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 $35.40.
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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.