CareFusion (NYSE:CFN) eked out earnings increases for its fiscal 4th quarter and the full year, despite posting sales declines during both periods.
San Diego-based CareFusion reported profits of $109 million, or 49¢ per share, on sales of $903 million for the 3 months ended June 30. That’s a bottom-line boost of 13.5%, despite a top-line decline of 6.0%.
For fiscal 2013, CareFusion logged profits of $385 million, or $1.72 per share, on sales of $3.55 billion, for profit growth of 31.4% on a 1.3% sales decline.
Analysts on Wall Street were looking for adjusted earnings per share of 56¢ for the 4th quarter, which CareFusion missed by a penny, and $2.12 for the full fiscal year, which the company met exactly.
"We made substantial progress in fiscal 2013 to advance our 3-year strategic plan through simplification and investment initiatives that were focused on expanding our margins and making CareFusion a more efficient company," chairman & CEO Kieran Gallahue said in prepared remarks. "Our strength in execution helped to expand both gross margins and operating margins to achieve double-digit EPS growth for the quarter, and a 9% increase for the year, all during difficult capital markets for hospitals. In addition, our fiscal 2013 operating cash flow from continuing operations of $613 million exceeded our expectations and highlights the ability of our businesses to generate strong cash flow."
CareFusion said its board approved a $750 million share buyback, which follows a $500 million repurchasing plan that saw the company buy back about 11.4 million shares for roughly $400 million during the fiscal year, according to a press release.
The company forecast fiscal 2014 sales growth of 1%-4%, or $3.59 billion to $3.69 billion and adjusted EPS of $2.30-$2.40.
In a separate release, CareFusion said principal accounting officer Jean Maschal is stepping down after 16 years with the firm, to be replaced by assistant controller Jonathan Wygant.
CFN shares were trading at $37.30 each as of about 11:20 a.m. today, down 0.1%.
