Hill-Rom Holdings Earnings: Here’s Why Shares are Down Now

Hill-Rom Holdings, Inc. (NYSE:HRC) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.04%.

Hill-Rom Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12.5% to $0.49 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Rose 4.35% to $424.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hill-Rom Holdings, Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company missed the mean analyst estimate of $0.49. It missed the average revenue estimate of $424.4 million.

Quoting Management: “Despite revenue slightly below our expectations, we are pleased to report adjusted earnings in line with our guidance and stable adjusted gross margin compared to the prior year,” stated John Greisch, President and CEO. “The healthcare environment remains challenging and we will continue our focus on initiatives to improve margins and maintain our strong, consistent cash flow.”

Key Stats (on next page)…

Revenue decreased 0.35% from $425.7 million in the previous quarter. EPS increased 0% from $0.49 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.62 to a profit $0.6. For the current year, the average estimate has moved down from a profit of $2.08 to a profit of $2.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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