Hospira Inc (HSP)) shares are being driven by growing sales and continue to pressure the newly-set 52-week high.
Company Description
Hospira makes pharmaceutical delivery systems, primarily injectable. The company provides products and systems to hospitals, wholesalers, delivery networks, clinics, home healthcare providers, and long-term care facilities.
Healthy Profits
Second-quarter results were released on Jul 29 and included sales of $957 million, up from $902 million in the same period last year. This equated to earnings per share of 73 cents, 22% higher than the Zacks Consensus Estimate of 60 cents.
This was Hospira’s third consecutive earnings surprise, with a 12% average. The company has just 3 misses in the past 5 years of reports.
Raising Guidance
As sales continued to grow following the report, the company raised guidance on Sep 17. Hospira is looking for 5-7% higher revenues, which would be between $3.81 billion and $3.88 billion. Last year the company brought in $3.63 billion.
Analysts Agree
Following both releases, covering analysts raised estimates. The Zacks Consensus Estimate for full-year 2009 is now $2.84, up from $2.70 in the past 3 months. Forecasts for next year are averaging $3.19, up from $3.06.
These figures are calling for year-over-year growth rates of 13% in each of the next 2 years.
The Chart
After a few attempts to break resistance near $41, shares convincingly moved higher and were further fueled by the raised guidance. The stock continues to pressure the newly-set 52-week high.
