CareFusion Earnings: Here’s Why Shares are Down Now

CareFusion Corporation (NYSE:CFN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.83%.

CareFusion Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.84% to $0.55 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Decreased 6.42% to $903 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CareFusion Corporation reported adjusted EPS income of $0.55 per share. By that measure, the company missed the mean analyst estimate of $0.56. It missed the average revenue estimate of $918.25 million.

Quoting Management: “We made substantial progress in fiscal 2013 to advance our three-year strategic plan through simplification and investment initiatives that were focused on expanding our margins and making CareFusion a more efficient company,” said Kieran Gallahue, chairman and CEO. “Our strength in execution helped to expand both gross margins and operating margins to achieve double-digit EPS growth for the quarter, and a 9 percent increase for the year, all during difficult capital markets for hospitals. In addition, our fiscal 2013 operating cash flow from continuing operations of $613 million exceeded our expectations and highlights the ability of our businesses to generate strong cash flow.”

Key Stats (on next page)…