) revealed that it has received approval from the U.S. Food and
Drug Administration (FDA) to update labeling with reduced dry
times for its ChloraPrep products. ChloraPrep is a broad-scale
antiseptic for minor and major medical procedures and acts
rapidly on a wide spectrum of bacteria. Following the
announcement, shares of the company rose 2.8% to $38.99, after
the market closed yesterday.
The reduced dry times apply to several CareFusion ChloraPrep
products, including Sepp, Frepp, Single and Triple Swabsticks.
These products have a reduced dry time on dry surgical sites of
30 seconds and a dry time on moist surgical sites of one minute.
They are no longer labeled for electrocautery procedure.
CFN has also updated dry time changes to 30 seconds for dry sites
and one minute for moist sites (for procedures not using an
ignition source) in its ChloraPrep 3mL applicators.
However, dry times for procedures that use an ignition source
remain unchanged at a minimum of three minutes on hairless skin
and up to one hour in hair. Labeling for 10.5mL and 26mL
applicators of ChloraPrep also remain unchanged.
CareFusion posted flat adjusted earnings per share of 44 cents
for the first quarter of fiscal 2014 compared with the comparable
quarter a year ago but exceeded the Zacks Consensus Estimate of
40 cents. Adjusted net earnings fell marginally by 3% to $96
million from $99 million a year ago.
Revenues in the quarter dipped marginally by nearly 1% (both in
reported and constant currency) to $830 million, topping the
Zacks Consensus Estimate of $818 million. The decrease was driven
by a fall in Medical Systems revenues.
For fiscal 2014, CFN continues to expect revenues to grow between
1 and 4% on a constant currency basis. Adjusted earnings are also
expected to lie in the previously guided range of $2.30 to $2.40
per share. The current Zacks Consensus Estimate of $2.34 for the
year lies within the guided range.
The guidance is based on an assumed weighted average
outstanding share count of approximately 215 million, which
includes the impact of expected share repurchases during fiscal
CAREFUSION CORP (CFN): Free Stock Analysis
HILL-ROM HLDGS (HRC): Free Stock Analysis
INSYS THERAP (INSY): Free Stock Analysis
MEDTRONIC (MDT): Free Stock Analysis Report
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CareFusion is a global corporation serving the health care
industry with products and services that help hospitals
measurably improve the safety and quality of care. Currently, CFN
retains a Zacks Rank #3 (Hold).
Other stocks that are performing well in the medical products
Hill-Rom Holdings, Inc.
INSYS Therapeutics, Inc.
) with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).