Hospira falls after disappointing analysts with profit forecast

Hospira Inc., maker of injectable medicines, fell the most in 18 months in New York trading, after disappointing analysts who looked for an increase in predicted earnings for the year.

Shares of the Lake Forest-based company declined $4, or 7 percent, to $52.81 at 12:45 p.m. in New York Stock Exchange composite trading. Earlier the stock declined as much as 9.7 percent, the most since October 2008.

Hospira's forecast for the year's earnings, excluding certain items, remains $3.35 to $3.45 a share, the company said today in a statement. With the items included, the forecast is $2.55 to $2.65. The company said sales will grow 3 percent to 5 percent. The company reported a 1.2 percent rise in second- quarter sales, to $968.2 million, and said net income more than tripled to $83.5 million, or 49 cents a share.

"Analysts expected them to raise their guidance," said John Putnam, an analyst with Capstone Investments Inc. in Milwaukee, in a telephone interview.

The analysts thought the company would benefit from the recall of Colleague infusion pumps, announced in May by Deerfield-based Baxter International Inc., Putnam said. Infusion pumps, also made by Hospira, are used to administer drugs and liquids to patients.

"People thought they could capitalize on the Baxter recall soon, but they said that won't really happen until 2011," Putnam said. He has a "buy" rating on Hospira shares, with a price target of $65.