The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hospira beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins grew, operating margins shrank, net margins grew.
Hospira logged revenue of $1.10 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $1.04 billion on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $1.01 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 $0.55. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. GAAP EPS were $0.03 for Q4 versus -$1.30 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 28.6%, 60 basis points better than the prior-year quarter. Operating margin was 4.7%, 20 basis points worse than the prior-year quarter. Net margin was 0.5%, 2,160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $4.21 billion. The average EPS estimate is $2.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 130 members out of 156 rating the stock outperform, and 26 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 $33.32.
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