Hospira Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Hospira (NYSE:HSP) will unveil its latest earnings on Wednesday, November 7, 2012. Hospira is a global specialty pharmaceutical and medication delivery company that develops products that help improve the safety and productivity of patient care.

Hospira Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a decline of 30.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 34.2% versus last year to $2.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 51 cents per share against a mean estimate of net income of 49 cents. The company fell in line with estimates in the first quarter.

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A Look Back: In the second quarter, the company swung to a loss of $2.5 million (2 cents a share) from a profit of $143.6 million (85 cents) a year earlier, but beat analyst expectations. Revenue fell 2.9% to $1.03 billion from $1.06 billion.

Stock Price Performance: Between August 8, 2012 and November 1, 2012, the stock price fell $3.61 (-10.4%), from $34.59 to $30.98. The stock price saw one of its best stretches over the last year between August 30, 2012 and September 7, 2012, when shares rose for six straight days, increasing 4.3% (+$1.45) over that span. It saw one of its worst periods between September 18, 2012 and September 28, 2012 when shares fell for nine straight days, dropping 7% (-$2.48) over that span.

Analyst Ratings: There are mostly holds on the stock with nine of 13 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 3.6% in the first quarter and dropped again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.87 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.98 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.1% to $938.1 million while assets rose 2% to $2.69 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.1% in revenue from the year-earlier quarter to $987.5 million.

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

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