Hospira Inc. (HSP), a provider of injectable drugs and infusion technologies, reported that its third-quarter of 2013 net income increased to $1.9 million from $1.2 million in the same quarter last year. But earnings per share for the latest-quarter was $0.01, unchanged from last year.
On a GAAP basis, income from operations was $30 million compared to a loss from operations of $17 million in the third quarter of 2012. Although GAAP income from operations in the third quarter of 2013 was negatively affected by charges related to the company's device strategy initiative, the quality- and product-related charges were lower in the third quarter of 2013 than in the same period last year.
Adjusted income from operations increased 8.3 percent to $122 million in the third quarter of 2013, compared to $113 million in the third quarter of 2012. The increase mainly reflects favorable product mix compared to the third quarter of 2012 and supply recovery in the United States, which more than offset a year-over-year increase in Selling, General and Administration expense.
Adjusted earnings per share for the quarter improved to $0.51 from last year's $0.47. Analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter rose to $1.008 billion from $994.0 million in the prior year quarter. Ten analysts had consensus revenue estimate of $993.22 million for the quarter. Continued strong global sales of Precedex and other Specialty Injectable Pharmaceuticals or SIP products in the United States more than offset the impact of pricing erosion of certain newer U.S. SIP products and lower device sales. The lower device sales primarily resulted from the impact of the ship-hold of most of the company's infusion devices previously put in place due to prior actions of various regulatory authorities.
For 2013, the company now expects GAAP loss per share to be in the range of $0.08 - $0.18. The company said in July that it expected GAAP earnings for full-year 2013 to be in the range of $0.01 - $0.11 per share.
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 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 expected to range between negative 5 percent and negative 3 percent. Foreign exchange is expected to detract from GAAP net sales by negative 1 percent.
Analysts expect the company to report earnings of $2.07 per share and revenues of $4.08 billion for fiscal 2013.
by RTT Staff Writer
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