S&P 500 (NYSE:SPY) component Hospira, Inc. (NYSE:HSP) reported net income above Wall Street’s expectations for the first quarter. Hospira Inc. is a global specialty pharmaceutical and medication delivery company that develops products that help improve the safety and productivity of patient care.
Hospira Earnings Cheat Sheet for the First Quarter
Results: Net income for Hospira, Inc. rose to $149.9 million (88 cents/share) vs. $141.7 million (84 cents/share) in the same quarter a year earlier. A rise of 5.8% from the year earlier quarter.
Revenue: Fell 0.5% to $1 billion YoY.
Actual vs. Wall St. Expectations: HSP beat the mean analyst estimate of 77 cents/share. Estimates ranged from 64 cents per share to 84 cents per share.
Quoting Management: “Hospira started out the year with a stronger-than-expected first quarter, aided by strong U.S. sales of docetaxel and gemcitabine, two major oncolytic pharmaceuticals,” said Christopher B. Begley, executive chairman and former chief executive officer (NYSE:CEO). “During the quarter, we gained momentum on several of our existing and newly launched specialty pharmaceuticals and made good progress in decreasing our level of backorders to better serve our customers. We remain focused on driving quality enhancements throughout the organization and on improving shareholder value through strong execution and sustainable growth.” Continued Begley, “During the quarter, we also welcomed new CEO F. Michael Ball, who joined Hospira on March 28. Mike is the perfect fit for Hospira, and after his first few weeks with us, I am even more confident he is the right person to lead the company and build on all we have accomplished over the past seven years.”
Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the fourth quarter of the last fiscal year, net income fell 37.3% while the figure dropped three quarters ago.
Over the last five quarters, revenue has increased 1.2% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 17.2% from the year earlier quarter.
Competitors to Watch: Teva Pharmaceutical Industries Ltd (ADR) (NASDAQ:TEVA), Mylan Inc. (NASDAQ:MYL), Akorn, Inc. (NASDAQ:AKRX), Novartis AG (NYSE:NVS), Baxter International Inc. (NYSE:BAX), Watson Pharmaceuticals, Inc. (NYSE:WPI), Allergan, Inc. (NYSE:AGN), Pfizer Inc. (NYSE:PFE), DURECT Corporation (NASDAQ:DRRX), Merck (NYSE:MRK) and ICU Medical, Incorporated (NASDAQ:ICUI).
Today’s Performance: Shares of HSP are trading at $59.23 as of April 26, 2011 at 9:04 AM ET, up 1.89% from the previous close of $58.13.