CareFusion (NYSE:CFN) rang up a nearly 163% increase in profits during its fiscal 3rd quarter, topping analysts’ expectations but disappointing The Street with lowered fiscal 2013 sales guidance.
The San Diego, Calif.-based medical device company reported net income of $84 million, or 37¢ per share, on sales of $901 million for the 3 months ended March 31. That compares with Q3 2012 profits of $32 million, or 14¢ per share, on sales of $919 million.
The results topped Wall Street’s expectations by 6¢ per share. But CFN shares dropped 3% Friday after CareFusion officials said they expect sales this year to be flat or down slightly compared to 2012 revenues of $3.6 billion. The company previously expected revenue to grow 1%-3% on a constant-currency basis.
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CareFusion reiterated its 2013 earnings guidance, saying it still expects to post adjusted EPS of $2.11-$2.21.
The company reported April 25 a $41 million set-aside for a government settlement for marketing practices of its ChloraPrep topical product. The earnings report includes the impact of this reserve fund, which the company said affected after-tax results by 15¢ per share.
"Our team executed well in the 3rd quarter, with Medical Systems performing as we expected. The Procedural Solutions segment delivered strong top- and bottom-line results on solid performance across all three businesses and continued strength in our clinically differentiated portfolio," said CEO Kieran Gallahue in prepared remarks.