Stock Market Watch

Care Fusion Falls after Profit Warning

by ·


CareFusion Corp. (NYSE: CFN) shares fell over 7% in morning trade after the company warned profits would come in below estimates. The company said it expects revenue for its second fiscal quarter, ended Dec.31, 2011, to be $910 million to $915 million and operating income to be $141million to $146 million. Excluding nonrecurring items, adjusted operating income is expected to be $148 million to $153 million.

CareFusion expects income from continuing operations per diluted share (EPS) for the quarter to be $0.39 to $0.43, or $0.41 to $0.45 on an adjusted basis. Analysts were looking for adjusted earnings of $0.46 per share. Separately the company also said it was lowering the bottom end of its fiscal year guidance range by a full 5 cents. The new range will be $1.75-$1.90 versus the earlier range of $1.80-$1.90.

CareFusion continues to expect full-year consolidated revenue for fiscal 2012 to grow at 3 to 5 percent when compared to fiscal 2011 revenue of $3.53 billion. The company attributed the lowered forecast to weakness in its Procedural Solutions segment resulting in weaker margins.


“Our Medical Systems segment continues to anchor us, with strong bookings in the quarter and good visibility through the second half of the year,” said CEO Kieran T. Gallahue. “While we continue to have scenarios that enable us to meet our original, full-year EPS commitments, results in our Procedural Solutions segment through Q2 are softer than we forecasted. Our core procedural products, including ChloraPrep® and non-dedicated infusion disposables, are performing well and growing faster than the market, just slightly below our expectations.

In addition, our margins in the segment were negatively affected by pricing pressure on our less clinically differentiated products. During the quarter, we continued to make good progress with our simplification initiatives and remain committed to our long-term goals.” He added.

More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...