Hospira Q4 Profit Surges, Results Beat Estimates - Update

(RTTNews) - Pharmaceutical and medication delivery company Hospira, Inc. (HSP) Wednesday reported a sharp increase in fourth-quarter profit, reflecting mainly restructuring charges in the prior year. Revenues edged down from last year. However, adjusted earnings as well as revenues beat analysts' expectations.

For the fourth quarter, the company posted net income of $33.5 million or $0.20 per share, significantly higher than $5.3 million or $0.03 per share in the same quarter last year.

On an adjusted basis, earnings per share were $0.51, while the company posted $0.55 per share last year. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter decreased 1.3 percent to $1.08 billion from $1.10 billion in the year-ago quarter. Nine. analysts estimated revenues of $1.06 billion for the quarter.

According to Hospira, majority of the decrease in sales was due to impact of ship-hold in place on most of the company's infusion devices, the expected year-over-year decline of U.S. sales of the oncolytic docetaxel and the negative impact of foreign currency.

The company said it saw strong growth in global Specialty Injectable Pharmaceuticals or SIP, which benefited from supply recovery and improved pricing in the U.S.

Michael Ball, chief executive officer of the firm said, "We believe our quality-improvement efforts and growth initiatives are positioning Hospira for a stronger, more competitive future, driving sustainable growth and value to our shareholders."

For full-year 2014, the firm expects earnings per share to be in the range of $0.91 to $1.16. Adjusted earnings per share are expected to be in a range of $2.00 to $2.25.

Street currently is looking for earnings of $2.15 per share, on revenues of $4.16 billion for the year.

The company anticipates change to net sales to range between negative 2 and positive 3 percent on a constant-currency basis, with a flat to negative 1 percent impact from foreign currency.

HSP closed Tuesday's regular trading at $44.26 on the NYSE.