Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

CareFusion Corp. (CFN - Analyst Report) 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 2014.

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 industry include Hill-Rom Holdings, Inc. (HRC - Snapshot Report) and INSYS Therapeutics, Inc. (INSY - Snapshot Report) with a Zacks Rank #1 (Strong Buy), and Medtronic, Inc. (MDT - Analyst Report) with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%