CareFusion Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CareFusion (NYSE:CFN) will unveil its latest earnings on Thursday, May 3, 2012. CareFusion is a medical technology company offering clinically proven products and services designed to improve the safety and quality of healthcare.

CareFusion Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 45 cents per share, a rise of 7.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 46 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 8.5% compared to last year’s $1.79.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 44 cents per share against a mean estimate of profit of 43 cents. The company fell in line with estimates in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $889.7 million in revenue this quarter, a rise of 2.6% from the year-ago quarter. Analysts are forecasting total revenue of $3.64 billion for the year, a rise of 3.1% from last year’s revenue of $3.53 billion.

Analyst Ratings: Analysts are bullish on this stock, with eight analysts rating it as a buy, none rating it as a sell and four rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose 25% to $95 million (42 cents a share) from $76 million (34 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 8.7% to $915 million from $1 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 8.9% in the third quarter of the last fiscal year, 6.9% in fourth quarter of the last fiscal year and 7% in the first quarter and then fell again in the second quarter.

Stock Price Performance: Between February 1, 2012 and April 27, 2012, the stock price rose $1.95 (8.1%), from $24 to $25.95. 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 July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 12.8% (-$3.59) over that span.

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

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