Earnings Preview For Hospira (HSP, RJF)

Hospira is expected to announce its Q1 earnings report on Tuesday, April 26, before the markets open. Analysts are predicting earnings per share to be $0.77, down from $0.94 a year ago. Just one month ago, the Q1 prediction was $0.69. Hospira is an Illinois-based specialty pharmaceutical and medication delivery company. Hospira's portfolio includes generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management systems. Hospira's products are used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities. It operates in three segments: Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC). In all segments, Hospira sells a line of products, including specialty injectable, other pharmaceuticals and medication management products. In March 2010, Hospira completed its acquisition of the generic injectable pharmaceuticals business of Orchid Chemicals & Pharmaceuticals. Last year, Hospira also completed its acquisition of Javelin Pharmaceuticals. Raymond James RJF analysts recently upgraded shares of Hospira from an “outperform” rating to a “buy” rating. Hospira's shares failed to capitalize on this news, however. The investors are probably waiting for Q1 reports first, before deciding to buy Hospira's shares. Analysts are optimistic about Hospira's revenue prospects. The company is expected to announce revenues of $948.85 million on Tuesday, down 5.8% on a yearly basis. Revenues are expected to pick up soon, however. For the next quarter, analysts are predicting revenues to climb to $1.01 billion, an increase of 3.9% on a yearly basis. For the whole year, an increase in revenue is projected to be 6.1%. Positive expectations have probably helped push Hospira's shares by 7% in the last 30 days. At the end of last week, its shares were trading at $57.78.