Barclays Maintains an 'Equalweight' on CareFusion (CFN); F1Q in Line; Guidance Maintained
Tweet
Share
E-mailGet Alerts CFN Hot Sheet
Price: $59.91 --0%
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 2 | Down: 8 | New: 6
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 2 | Down: 8 | New: 6
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on CareFusion (NYSE: CFN) price target of $28.00.
Barclays analyst says, "CFN reported FY1Q12 results that were in line on the top and bottom lines. The components of the result were slightly different than expected as strong growth in Infusion and Dispensing, combined with a lower tax rate, helped the company absorb a $12 MM charge related to its voluntary ventilator recall (which the company did not call out as 1x). On the positive side, gross margins of 50.6% topped our 50.4% expectation and would have been 140 bps higher without the recall impact (which is not expected to recur) and CFN reiterated FY12 guidance for revenue growth (up 3-5% ex-fx), EPS ($1.80-1.90), adjusted operating margins (18%), and operating cash flow ($600-650 MM). At the same time, CFN anticipates a greater negative impact from pump discounting in the FY2Q and FY3Q; and there was some weakness in the Respiratory and Procedural Solutions businesses (both tracking below guidance) due to lower procedure volumes and European softness. Net-net, sifting through the moving parts, we view this as an in-line quarter and think that CFN continues to be on track to meet FY12 guidance but will need to see sequential improvement in its other businesses (ex Infusion and Dispensing) to see upside."
For an analyst ratings summary and ratings history on CareFusion click here. For more ratings news on CareFusion click here.
Shares of CareFusion closed at $25.31 yesterday.
Barclays analyst says, "CFN reported FY1Q12 results that were in line on the top and bottom lines. The components of the result were slightly different than expected as strong growth in Infusion and Dispensing, combined with a lower tax rate, helped the company absorb a $12 MM charge related to its voluntary ventilator recall (which the company did not call out as 1x). On the positive side, gross margins of 50.6% topped our 50.4% expectation and would have been 140 bps higher without the recall impact (which is not expected to recur) and CFN reiterated FY12 guidance for revenue growth (up 3-5% ex-fx), EPS ($1.80-1.90), adjusted operating margins (18%), and operating cash flow ($600-650 MM). At the same time, CFN anticipates a greater negative impact from pump discounting in the FY2Q and FY3Q; and there was some weakness in the Respiratory and Procedural Solutions businesses (both tracking below guidance) due to lower procedure volumes and European softness. Net-net, sifting through the moving parts, we view this as an in-line quarter and think that CFN continues to be on track to meet FY12 guidance but will need to see sequential improvement in its other businesses (ex Infusion and Dispensing) to see upside."
For an analyst ratings summary and ratings history on CareFusion click here. For more ratings news on CareFusion click here.
Shares of CareFusion closed at $25.31 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Barclays Upgrades Schott Pharma AG (1SXP:GR) to Overweight
- JPMorgan Double Upgrades Hemnet Group AB (HEM:SS) to Overweight
- Jefferies Starts Tamarack Valley Energy Ltd. (TVE:CN) at Buy
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
