The 10-second takeaway
For the quarter ended June 30 (Q2), Hospira beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Hospira notched revenue of $1.03 billion. The 12 analysts polled by S&P Capital IQ predicted revenue of $987.0 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $1.06 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 $0.51. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS were -$0.02 for Q2 against $0.85 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 28.5%, 1,030 basis points worse than the prior-year quarter. Operating margin was 4.0%, 1,400 basis points worse than the prior-year quarter. Net margin was -0.2%, 1,370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $992.1 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $2.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 131 members out of 160 rating the stock outperform, and 29 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 $36.00.
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