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)…

Revenue increased 0.22% from $901 million in the previous quarter. EPS decreased 6.78% from $0.59 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.48. For the current year, the average estimate has moved down from a profit of $2.14 to a profit of $2.12 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]