CareFusion Fourth Quarter Earnings SNEAK PREVIEW

S&P 500 (NYSE:SPY) component CareFusion Corporation (NYSE:CFN) will unveil its latest earnings on Thursday, August 9, 2012. CareFusion is a medical technology company offering clinically proven products and services designed to improve the safety and quality of healthcare.

CareFusion Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 50 cents per share, a decline of 3.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 52 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting profit of $1.77 per share, a rise of 7.3% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 49 cents per share against a mean estimate of profit of 45 cents, and the quarter before, the company exceeded forecasts by one cent with net income of 44 cents versus a mean estimate of profit of 43 cents.

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A Look Back: In the third quarter, profit fell 31.1% to $31 million (13 cents a share) from $45 million (20 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 6% to $919 million from $867 million.

Stock Price Performance: Between May 9, 2012 and August 3, 2012, the stock price fell $1.83 (-7.1%), from $25.95 to $24.12. The stock price saw one of its best stretches over the last year between January 17, 2012 and January 26, 2012, when shares rose for eight straight days, increasing 5.9% (+$1.34) over that span. It saw one of its worst periods between May 4, 2012 and May 18, 2012 when shares fell for 11 straight days, dropping 9% (-$2.43) over that span.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 6.9% in the fourth quarter of the last fiscal year, 7% in the first quarter and 8.7% in the second quarter before climbing in the third quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 63.5% in the fourth quarter of the last fiscal year, 76.3% in the first quarter and 25% in the second quarter before declining in the third quarter.

Wall St. Revenue Expectations: Analysts are projecting a decline of 0.3% in revenue from the year-earlier quarter to $960.6 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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