) to beat expectations when it reports first quarter 2014 results
on Apr 30 before the opening bell. Last quarter the company
delivered an earnings surprise of +2.00%.
Why a Likely Positive Surprise?
Our proven model conclusively shows that Hospira is likely to
beat earnings this quarter because it has the right combination
of two key ingredients.
Positive Zacks ESP: The
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +4.08%. This is a meaningful and leading indicator
of a likely positive earnings surprise for the shares.
Zacks Rank #3 (Hold): Note that stocks with a Zacks Rank #1, 2
and 3 have a significantly higher chance of beating earnings
estimates. We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revision
The combination of Hospira's Zacks Rank #3 and an ESP of +4.08%
makes us confident of an earnings beat this season.
Growth Factors This Quarter
Hospira has delivered positive earnings surprises in each of the
last four quarters with an average beat of 10.34%.
Revenues from the company's Specialty Injectable Pharmaceuticals
(SIP) segment, the biggest contributor to Hospira's revenues, are
expected to climb this quarter as well. However, we believe
Hospira's revenues will remain under pressure until the
manufacturing issues confronting the company are resolved.
Operating costs will increase in the first quarter of 2014 as
Hospira is investing actively in its pipeline. Increased costs
will hurt the bottom line.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements − a
positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3
) has an Earnings ESP of +3.34% and holds a Zacks Rank #2 (Buy).
Actavis will be reporting first quarter earnings on Apr 30 before
) has an Earnings ESP of +0.89% and holds a Zacks Rank #2.
Allergan will be reporting first quarter earnings on May 7 before
Endo International plc
) has an Earnings ESP of +5.95% and holds a Zacks Rank #3. Endo
will be reporting first quarter earnings on May 1 before market
ACTAVIS PLC (ACT): Free Stock Analysis Report
ALLERGAN INC (AGN): Free Stock Analysis
ENDO INTL PLC (ENDP): Free Stock Analysis
HOSPIRA INC (HSP): Free Stock Analysis Report
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