Hospira Q2 Adj. Profit Tops Estimate; Backs FY13 Adj. EPS View - Quick Facts

(RTTNews) - Hospira, Inc. (HSP) reported that its second-quarter net income was $32.9 million or $0.20 per share, compared to a loss of $2.5 million or $0.02 per share in the same quarter last year.

Adjusted net income for the quarter increased to $92.1 million from last year's $84.9 million, with adjusted net income per share improving to $0.55 from $0.51 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted income from operations increased 7.8 percent to $126 million in the second quarter of 2013, compared to $117 million in the second quarter of 2012. The increase mainly reflects favorable product mix compared to the second quarter of 2012, which more than offset a year-over-year increase in Selling, General and Administration expense and higher manufacturing costs related to the company's quality initiatives. Net sales for the quarter declined 0.7% to $1.026 billion from $1.033 billion in the prior year quarter. Nine analysts had consensus revenue estimate of $1.03 billion for the quarter.

Hospira continues to project the year-over-year change to 2013 adjusted net sales to be negative 1 percent to positive 1 percent, on a constant-currency basis. Adjusted net sales exclude the first-quarter 2013 impact of customer sales allowances associated with the company's new device strategy announced in May 2013. On a GAAP basis, the year-over-year change to net sales is now expected to range between negative 5 percent and negative 3 percent. Foreign exchange is now expected to detract from net sales by a negative 1 percent.

The company continues to expect full-year 2013 adjusted earnings per share to range between $2.00 and $2.10, representing flat to 5 percent growth.

The company now expects GAAP earnings for full-year 2013 to be in the range of $0.01 - $0.11 per share, compared to prior estimate of profit per share in the range of $0.17-$0.27.

Analysts expect the company to report earnings of $2.03 per share and revenues of $4.06 billion for fiscal 2013.