) is set to report its fourth quarter 2013 results on Feb 12
before the opening bell. Last quarter the company delivered an
earnings surprise of +13.33%. Let's see how things are shaping up
for this announcement.
Growth Factors This Quarter
Hospira has delivered positive earnings surprises in the last
four quarters with an average beat of 10.30%.
The U S Food and Drug Administration's (FDA) warning letter
related to manufacturing practice deficiencies at different
manufacturing units of Hospira including the Rocky Mountains,
Costa Rica, Illinois and India, will continue to put downward
pressure on revenues in the fourth quarter of 2013.
Operating costs will increase in the final quarter of 2013 as
Hospira is investing actively in its pipeline. Increased costs
will hurt the bottom-line.
Our proven model does not conclusively show that Hospira is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see
Positive Zacks ESP:
The Earnings ESP, which represents the difference between the
Most Accurate estimate and the Zacks Consensus Estimate, is
Zacks Rank #4 (Sell):
Hospira's Zacks Rank #4 significantly lowers the predictive power
of the ESP. We caution against stocks with Zacks Rank #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing a negative estimate
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements i.e., a
positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3:
) has an Earnings ESP of +0.33% and holds a Zacks Rank #2 (Buy).
Actavis will be reporting fourth quarter earnings on Feb 20.
) has an Earnings ESP of +0.99% and holds a Zacks Rank #2. Shire
will be reporting fourth quarter earnings on Feb 13.
) has an Earnings ESP of +11.11% and holds a Zacks Rank #1
(Strong Buy). NuVasive will be reporting fourth quarter earnings
on Mar 3.
ACTAVIS PLC (ACT): Free Stock Analysis Report
HOSPIRA INC (HSP): Free Stock Analysis Report
NUVASIVE INC (NUVA): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
To read this article on Zacks.com click here.