UPDATE 1-CareFusion beats Street, raises outlook, shrs jump

* Adjusted EPS 39 vs Wall Street view of 33

* Raises outlook for fiscal 2010

* Sees "moderate improvement" in hospital capex

* Shares rally 7.4 percent to a record

CHICAGO, Nov 5 (Reuters) - CareFusion Corp (CFN.N), the medical device company spun off from Cardinal Health (CAH.N) on Sept. 1, posted a higher-than-expected quarterly profit, driven by strong demand in ventilators for flu and emergency preparedness related to H1N1, or swine flu.

The company also increased its outlook for the full year to earnings per share of $1.35 to $1.45 from its previous forecast of $1.10 to $1.20, on revenue of $3.85 billion to $4.00 billion.

CareFusion shares rallied 7.4 percent to a record $24.22 in early trading on the New York Stock Exchange.

Management reiterated its long-term goals for top-line growth in the mid-single digits and profit growth from 11 to 15 percent.

CareFusion said its fiscal first-quarter net earnings were $81 million, or 37 cents per diluted share, on revenue of $923 million. In the year-ago period, had CareFusion been operating as a stand-alone company, earnings would have been $113 million, or 51 cents per share, on revenue of $915 million.