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Hospira Inc. Message Board

  • investora2z investora2z Jul 17, 2013 12:11 PM Flag

    Earnings on July 31

    The earnings will be released on July 31, and that will be a trigger for the stock. It has done well recently, with 25% appreciation over the last three months. This is despite the fact that it has several issues with the FDA regarding quality control, and Moody downgraded its debt rating to junk. Moody's action was based on the regulatory matters and concerns over cash flow constraints. Over the longer term, the performance has not been very good. The revenue growth has been slow, and the net income has witnessed declines. The company reported a loss during the last quarter, and the revenue also declined by 8.5% from $966 in Q1'12 to $884 million. The loss was partly attributed to increased expenses related to its quality control efforts. Furthermore, it faces competition from the likes of Pfizer (PFE), Baxter (BAX), Fresenius Kabi and Sandoz, and hence requires continuous efforts at developing new products / devices. Innovation is the key to success in this market. A small medical device companies PLC Systems (PLCSF) is making a mark for itself based on innovative proprietary technology it has created. Its product RenalGuard has recently received several US / European patents. Hospira's expenditure on R&D had shown a 17.3% increase in 2012, and it has products in the pipeline. It can achieve good growth in the long term, but over the short term the outlook is not so robust. The full fiscal guidance indicates that the sales may remain flat, and adjusted diluted EPS is likely to be between $2.00 & $2.10. Even the debt on books is a little high at $1.75 billion. Thus, the recent rise in the stock price may be difficult to sustain if the upcoming earnings do not deliver any positive surprise. The rise has been despite many odds, and hence a little bit of caution may be good.

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    • Negative conference call this morning.....wonder how the market will react.....will respond to the future expectations or the results given?

    • HSP rise the past few months has been the result of a investment firm recommending the stock as being undervalued (at 35) and a favorable ruling on the use of biosimilars in Europe. Its current price, close to the 52 week high, has nothing to do with performance to date, but future expectations. How long it can stay at this level on expectations is difficult to say. Any slightly positive improvement in earnings or revenue should result in a 52 week high, whereas a negative report may cause a temporary drop with bargin hunters coming in and buying "on expectations". Any down movement should be temporary with a new base at around 37.50. Didn't need the promotion of PLC Systems........are you spamming it on the this board?

    • JMHO, if they miss on earnings & sales could get hit hard. This market is unforgiving to company's that miss.

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