Hospira, Inc. Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Hospira, Inc. (NYSE:HSP) reported net income above Wall Street’s expectations for the second 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.

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Hospira Earnings Cheat Sheet for the Second Quarter

Results: Net income for Hospira, Inc. rose to $143.6 million (85 cents per share) vs. $83.5 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 72% from the year earlier quarter.

Revenue: Rose 9.9% to $1.06 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HSP reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 77 cents per share. It beat the average revenue estimate of $972.9 million.

Quoting Management: “Hospira delivered strong second-quarter performance, driven primarily by positive results for the oncolytic docetaxel in the United States,” said F. Michael Ball, chief executive officer. “We continued to advance the business and make progress on our quality and product supply improvement initiatives. In part due to the quarter’s results, we are increasing our sales projections for the year, and remain focused on driving value for our customers, patients and shareholders.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of three consecutive quarters of revenue declines. Revenue fell 0.5% in the first quarter, 6% in the fourth quarter of the last fiscal year and 5.8% in the third quarter of the last fiscal year.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 93 cents versus a mean estimate of net income of 79 cents per share.

The company has now been profitable for the last nine quarters, and for the last five, profit has risen year over year by an average of 45.9%. The quarter with the biggest boost was the second quarter of the last fiscal year, which saw a more than threefold surge.

Competitors to Watch: Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Mylan Inc. (NASDAQ:MYL), Akorn, Inc. (NASDAQ:AKRX), Novartis AG (NYSE:NVS), Baxter International Inc. (NYSE:BAX), Watson Pharmaceuticals, Inc. (NYSE:WPI), Pfizer Inc. (NYSE:PFE), DURECT Corporation (NASDAQ:DRRX), ICU Medical, Incorporated (NASDAQ:ICUI), and Allergan, Inc. (NYSE:AGN).

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(Source: Xignite Financials)