Stock Monitor: Sensus Healthcare Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 06, 2018 / Active-Investors.com has just released a free earnings report on Hill-Rom Holdings, Inc. (NYSE: HRC) ("Hill-Rom"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=HRC. The Company reported its first quarter fiscal 2018 operating and financial results on January 26, 2018. The medical equipment maker outperformed top- and bottom-line expectations, raised its full year FY18 outlook, and updated its 2020 long-range financial objectives. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hill-Rom Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=HRC
Earnings Highlights and Summary
For the first quarter ended December 31, 2017, Hill-Rom's worldwide revenue rose 5% to $669.7 million compared to $637.4 million in Q1 FY17. The Company's domestic revenue grew 2% to $453 million on a y-o-y basis, while revenue outside the US advanced 13% to $217 million. Hill-Rom's revenue, excluding foreign currency, divestitures, other non-strategic assets the Company may exit, and Mortara revenue prior to the anniversary date of the acquisition (core revenue), advanced 2% on a constant currency basis. The Company's revenue numbers exceeded analysts' estimates of $659 million.
During Q1 FY18, Hill-Rom's gross margin expanded 20 basis points to 47.7% compared to the year ago same period; while its operating margin was 7.9%, 90 basis points lower than in Q1 FY17. On an adjusted basis, the Company's gross margin expanded 20 basis points to 47.7%, and operating margin expanded 10 basis points to 14.7%.
For Q1 FY18, Hill-Rom reported earnings of $88.3 million, or $1.31 per diluted share, compared to $23.8 million, or $0.36 per diluted share, in Q1 FY17. The Company's reported quarter results reflected after-tax special items, including a net tax benefit of $0.89 per diluted share primarily related to new US Tax Reform legislation.
On an adjusted basis, Hill-Rom's earnings rose 23% to $0.92 per diluted share from $0.75 per diluted share in the prior year's comparable quarter, reflecting solid revenue growth, continued margin expansion, strategic investments to drive future growth, and a lower tax rate. The Company's adjusted earnings exceeded Wall Street's estimates of $0.80 per share.
Segment Results
During Q1 FY18, Hill-Rom's Patient Support Systems segment's revenue of $334.4 million was marginally lower compared to $335.2 million in Q1 FY17. The segment's core revenue increased 2% on a constant currency basis.
For Q1 FY18, Hill-Rom's Front Line Care segment's revenue advanced 11% to $224.6 million compared to $201.8 million in Q1 FY17. The segment's core revenue declined 1% on a constant currency basis. The Company's Surgical Solutions segment's revenue totaled $110.7 million, reflecting a growth of 10.3% compared to $100.4 million in the year earlier corresponding quarter.
Leadership Update
On January 26, 2018, Hill-Rom announced that John J. Greisch, 62, President and Chief Executive Officer (CEO), has informed the Board of Directors of his intention to retire from the Company during Q3 FY18. At the effective time of the retirement, Greisch will also step down from the Board of Directors of the Company. Hill-Rom's Board of Directors has initiated a search process to identify a successor for Greisch.
Outlook
For the full year FY18, Hill-Rom re-affirmed its revenue forecasts growth in the range of 3% to 4% on a reported basis. The Company continues to expect core revenue to increase approximately 3%. Based on Hill-Rom's Q1 FY18 results and benefits related to the new US Tax Reform legislation, the Company is estimating adjusted earnings to be in the range of $4.57 to $4.65 per diluted share, and operating cash flow to be approximately $350 million.
For the second quarter of the fiscal 2018, Hill-Rom is projecting revenue to increase approximately 4% on a reported basis, and core revenue to increase approximately 2%. The Company is estimating adjusted earnings to be in the band of $1.00 to $1.02 per diluted share.
Long-Range Financial Objectives
Hill-Rom updated its 2020 financial outlook based on a preliminary assessment of the new US Tax Reform legislation, which the Company believes will have a positive impact on its adjusted effective tax rate and adjusted earnings. Hill-Rom is estimating adjusted earnings per share growth in the range of 12% to 14% on a compound annual basis through 2020, compared to its earlier forecasts for adjusted earnings growth in the band of 10% to 12%.
Hill-Rom continues to expect reported revenue growth to be in the 3% to 4% range on a compound annual basis from 2017 through 2020, and accelerate core revenue growth to be in the 4% to 5% band. Hill-Rom reiterated its commitment to drive continued margin expansion, targeting an adjusted gross margin of approximately 50%, and adjusted operating margin in the 19% to 20% range by 2020.
Stock Performance Snapshot
February 05, 2018 - At Monday's closing bell, Hill-Rom Holdings' stock fell 4.17%, ending the trading session at $83.40.
Volume traded for the day: 1.04 million shares, which was above the 3-month average volume of 505.58 thousand shares.
Stock performance in the last three-month - up 4.25%; previous six-month period - up 10.73%; and past twelve-month period - up 38.95%
After yesterday's close, Hill-Rom Holdings' market cap was at $5.47 billion.
Price to Earnings (P/E) ratio was at 28.31.
The stock has a dividend yield of 0.86%.
The stock is part of the Healthcare sector, categorized under the Medical Instruments & Supplies industry.Active-Investors:
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