Shares of CareFusion Corporation escalated nearly 1.0% yesterday following the commercial launch of its new micro-laparoscopic line of surgical instruments, MicroLap. This new line of surgical instruments helps surgeons perform any type of laparoscopic surgery without any limitations on specialty or procedural uses.
CareFusion’s MicroLap offers a reusable full line hand instruments, access devices, scopes and accessories. Its instruments avoid the need to close the incision site and leads to a virtually scar-less procedure. Thanks to its smaller 2.7mm diameter that leave an incision scar half that of standard laparoscopic instruments (5mm or 10mm).
The CareFusion MicroLap hand instrument offers graspers, dissectors, scissors, and needle holders. The hand instrumentation is stronger than standard 5mm laparoscopic instruments as the former is made of a ceramic titanium alloy material.
MicroLap Scopes are available in 2.7mm and 2.9mm diameter options, with varying lens angles. The offering also includes electrosurgical options as well as suction and irrigation tools.
The Microlap instruments line is manufactured by a German endoscopic technology company Gimmi GmbH. CareFusion is the sole distributor of the product in the U.S.
CareFusion posted almost flat adjusted earnings per share of 60 cents for the third quarter of fiscal 2014 compared with 59 cents in the same quarter a year ago but missed the Zacks Consensus Estimate by 3 cents. However, adjusted net earnings fell 5.2% to $127 million from $134 million a year ago.
Revenues in the quarter rose 7.4% (both in reported and constant currency) to $968 million, lagging the Zacks Consensus Estimate of $979 million. The increase was driven by rise in Procedural Solutions revenues.
CareFusion upgraded its revenues and earnings guidance for fiscal 2014. The company now 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 are also expected to lie in the previously guided range of $2.30 to $2.40 per share. The current Zacks Consensus Estimate of $2.31 lies within the guided range.
Currently, CareFusion retains a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical products industry include Cardica Inc. , NeuroMetrix Inc. , and St. Jude Medical Inc. . ). All of them retain a Zacks Rank #2 (Buy).