) is set to release its fourth quarter and fiscal 2014 results on
Aug 7, after the closing bell. In the last quarter, the company
posted a negative earnings surprise of 4.76%. Let's see how things
are shaping up for this announcement.
Growth Factors This Past Quarter
CareFusion's products are considered among top-spending priorities
of healthcare providers given the pressing need for implementing
infusion or dispensing technologies. The company is also poised to
grow globally through acquisitions, mainly through its recent
acquisition of Vital Signs division of GE Healthcare. The
acquisition will not only expand CareFusion's Specialty Disposables
business under the Procedural Solutions segment internationally but
also establish itself as a leader in the $3 billion market for
respiratory and anesthesia consumables.
CareFusion upgraded its revenues and earnings guidance for fiscal
2014. The company expects revenues to grow between 5 and 7%, up
from the prior range of 4 to 7% and organic revenues to grow
between 2 and 4%, up from the prior outlook of 1 to 4%, both on a
constant currency basis for the year.
Adjusted earnings continue to expect to lie in the range of $2.30
to $2.40 per share, up 8.5-13.2% from $2.12 in fiscal 2013. The
Zacks Consensus Estimate of $2.31 lies within the guided range.
Our proven model does not conclusively show that CareFusion is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3
for this to happen. That is not the case here as you will see
, the difference between the Most Accurate Estimate of 72 cents and
the Zacks Consensus Estimate of 73 cents, stands at -1.37%.
Zacks Rank #3 (Hold):
The combination of CareFusion's Zacks Rank #3 (Hold) and negative
ESP makes surprise prediction difficult. We caution against stocks
with Zacks #4 and #5 Ranks (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
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 to post an
earnings beat this quarter:
Curis, Inc. (
), Earnings ESP of 33.33% and a Zacks Rank #1 (Strong Buy).
Myriad Genetics Inc. (
), Earnings ESP of 4.35% and a Zacks Rank #1 (Strong Buy).
Medtronic, Inc. (
), Earnings ESP of 1.09% and a Zacks Rank #2 (Buy).
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CAREFUSION CORP (CFN): Free Stock Analysis
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