Company name: Hospira
Location: Lake Forest, IL
Annual sales (in millions): $1,061
Market share: 3.3%
CEO: Christopher Begley
Hospira began trading on the New York Stock Exchange in 2004 after its spin-off from Abbott Laboratories. The name "Hospira" is derived from the words hospital, spirit, inspire and the Latin word spero, which means hope. It reflects the company's primary market focus and expresses the hope and optimism that are critical in the healthcare industry, according to the company's website.
The company had net sales of $968.2 million, up from $956.9 million during the same period last year. Hospira is maintaining guidance for net sales growth of approximately 3 percent to 5 percent on a constant-currency basis, the company says in an earnings statement. It beat its quarterly profit expectations, but didn't alter its 2010 earnings forecast of $3.35 - $3.45 a share. As a result, shares fell more than 8 percent on fears of weaker performance during the rest of the year, Reuters notes. "With strong second-quarter EPS outperformance, unchanged guidance could imply a worse second half than we currently model," Leerink Swann analyst Rick Wise writes, as quoted by Reuters.
CFO Thomas Werner says the static earnings view was largely because of increased charges associated with quality-improvement initiatives and a rise in drug back-orders. In addition, Hospira expects an increase in R&D spending in the second half of the year, Werner adds, as quoted by the Wall Street Journal.