WASHINGTON (dpa-AFX) - Healthcare products company CareFusion Corp. (CFN), Monday reported a better-than-expected rise in fourth-quarter profit due mainly to growth in its Infusion, Dispensing and Infection Prevention businesses. Looking ahead, the company also detailed its earnings outlook for the full year 2012.
CareFusion's net income for the fourth quarter was $85.0 million or $0.37 per share, compared with $52.0 million or $0.23 per share last year.
Excluding items, adjusted net income for the quarter was $118.0 million or $0.52 per share, compared to $80.0 million or $0.36 per share in the prior year.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.
Chief Executive Kieran Gallahue said, 'Growth in our Infusion, Dispensing and Infection Prevention businesses, gross margin expansion and the benefit of strong spending controls drove double digit improvements in our adjusted operating earnings for the quarter and for the year.'
Revenue for the quarter increased 4.0 percent to $964.0 million from $930.0 million last year. Wall Street analysts expected revenues of $967.22 million for the quarter.
At Critical Care Technologies segment, which forms the main business, sales increased 7 percent, driven by Infusion product sales and a contribution from the May 2010 acquisition of Medegen and an increase in Dispensing sales.
Revenue for the Medical Technologies and Services segment decreased 8 percent, driven by the loss of revenue from the company's April 2011 divestiture of the OnSite Services business, as well as the May 2010 divestiture of the Research Services business.
During the quarter, CareFusion benefited from lower income tax payment of $34 million, compared with $60 million last year.
Looking ahead to fiscal year 2012, CareFusion expects adjusted earnings of $1.80 to $1.90 per share, while revenue is forecast to grow 3.0 to 5.0 percent over 2011 on a constant currency basis.
Street analysts currently expect earnings of $1.62 per share for the quarter.
CFN closed Monday's regular trade at $22.26, down $1.76 or 7.33%, on a volume of 4.0 million shares on the NYSE.
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