Hospira (HSP) Beats on Q2 Earnings, Revenues In Line - Tale of the Tape
Hospira Inc. (HSP) is a global leader in the development, manufacturing and marketing of injectable pharmaceuticals and integrated infusion therapy and medication management products. The Lake Forest, Ill based company is well known for its generic acute-care and oncology injectable products.
Revenues at Hospira are expected to remain under pressure primarily due to the negative impact of genericization of Precedex.
Meanwhile, the focus would remain on the Pfizer – Hospira deal. Pfizer is set to buy Hospira in a cash transaction valued at about $17 billion or $90 per share. The offer price represents a significant premium (39%) over Hospira’s Feb 4 closing price. The deal is expected to close in the second half of 2015.
Hospira has a pretty good earnings track record with the company delivering positive earnings surprises in all of the last four quarters with an average surprise of 46.92%.
Currently, Hospira has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Hospira beat on earnings by a wide margin. Our consensus called for EPS of 78 cents, and the company reported EPS of 85 cents.
Revenue: Revenues were in line with expectations. Hospira posted revenues of $1.2 billion, which is in line with our consensus estimate.
Key Stats: Even though Hospira to continues to facing challenges including foreign currency fluctuations and entry of generic versions of Precedex, Specialty Injectable Pharmaceuticals (SIP) and Other Pharma segment has performed well. However, the Medication Management segment is still under pressure.
Check back later for our full write up on this Hospira earnings report later!
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