Hospira (HSP), a provider of injectable pharmaceutical drugs and infusion technologies, has posted a 2.16 times surge in profit for the quarter ended Jun. 30, 2014. The company earned $70.90 million or $0.42 a share in the second-quarter compared with $32.90 million or $0.20 a share a year ago. Adjusted earnings per share came in at $0.72, when analysts expected $0.57.

Revenue during the second-quarter grew 10.68 percent to $1135.80 million from $1026.20 million in the last year period.

Gross margin expanded by 416 basis points over the previous year period to 35.22 percent. Total expenses as a percentage of revenues decreased to 91.24 percent from 94.91 percent in the same period last year. That has resulted in improvement of 367 basis points in operating margins to 8.76 percent.

The company disclosed operating income of $99.50 million, compared with $52.20 million in the last year period.

''Hospira delivered another strong quarter, driven by continued positive performance in our Specialty Injectable Pharmaceuticals products,'' said F. Michael Ball, chief executive officer.

The company is now projecting adjusted diluted earnings per share for 2014 to range between $2.30 and $2.50.

Cash Flow

Hospira has generated cash of $175.50 million from operating activities during the first half, up 246.84 percent or $124.90 million when compared with the last year period. The company has generated 8.03 cents of operating cash flow in every sales dollar for the first half, up from 2.65 cents in the same period last year.

The company has spent $181.20 million cash to meet investing activities during the first half, as against cash outgo of $161.20 million in the last year period. It has made net capital expenditure of $184.80 million during the first half, which was higher by 21.02 percent or $32.10 million, from a year ago.

The company has generated cash of $3.40 million from financing activities during the first half, down 91.28 percent or $35.60 million, when compared with the last year period. It has made net repayment of $77.20 million debt during the first half. It has raised net of $78 million by selling common stocks.

As on Jun. 30, 2014, the company's cash balance stood at $796.50 million, up 16.58 percent or $113.30 million from Jun. 30, 2013.

Working Capital

Hospira has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1869.20 million as at Jun. 30, 2014, up $581.20 million or 45.12 percent from $1,288 million on Jun. 30, 2013. It registered an increase in current ratio to 2.57 as at Jun. 30, 2014 from 1.88 on Jun. 30, 2013.

Debt Position

Hospira has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $1768.80 million, up 0.44 percent or $7.70 million, from Jun. 30, 2013.

The company's total debt was 27.63 percent of total assets as on Jun. 30, 2014, compared with 29.28 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 0.54 on Jun. 30, 2014 compared with 0.61 on Jun. 30, 2013.

Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 5.18 from 2.62 in the same period last year.

Shares of the company gained $2.17 or 4.18 percent to trade at $54.07 on Wednesday (10:19AM).