Hospira, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hospira, Inc. (NYSE:HSP) will unveil its latest earnings on Wednesday, July 27, 2011. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 78 cents per share, a decline of 9.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 95 cents. Between one and three months ago, the average estimate moved down, but has risen from 77 cents during the last month. For the year, analysts are projecting profit of $3.98 per share, a rise of 20.2% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 93 cents per share against a mean estimate of profit of 79 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 16 cents.

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Wall St. Revenue Expectations: On average, analysts predict $972.9 million in revenue this quarter, a rise of 0.5% from the year ago quarter. Analysts are forecasting total revenue of $4.16 billion for the year, a rise of 6.1% from last year’s revenue of $3.92 billion.

Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, one rating it as a sell and two rating it as a hold.

Key Stats:

The increase in profit in the first quarter breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income rose 5.8%, while the figure dropped 37.3% in the fourth quarter of the last fiscal year and 38.6% in the third quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In first quarter, revenue declined 0.5% to $1 billion while the figure fell 6% in fourth quarter of the last fiscal year from the year earlier and 5.8% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had fallen $3.74 (-6.5%) from $57.35 to $53.61. The stock price saw one of its best stretches over the last year between March 28, 2011 and April 5, 2011 when shares rose for seven-straight days, rising 4.7% (+$2.54) over that span. It saw one of its worst periods between December 17, 2010 and December 29, 2010 when shares fell for eight-straight days, falling 3.4% (-$1.94) over that span. Shares are down $2.08 (-3.7%) year to date.

(Source: Xignite Financials)

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