Hill-Rom slips on fiscal Q3 sales miss, lowered outlook

Hill-Rom (NYSE:HRC) shares came under pressure in pre-market trading today after the medical device giant posted fiscal third-quarter results that missed the consensus sales forecast and lowered its outlook for the rest of the year.

Chicago-based Hill-Rom reported profits of $6.0 million, or 9¢ per share, on sales of $689.1 million for the three months ended June 30, for a bottom-line slide of -86.8% on sales growth of 5.1% compared with fiscal Q3 2016.

Adjusted to exclude one-time items, earnings per share were 91¢, dead even with the consensus on Wall Street, although analysts there were looking for sales of $693.8 million.

“The strength of our third-quarter financial results reflects the value of our diversified portfolio, positive momentum in our international business and disciplined execution of cost management initiatives. We are also updating our full-year guidance to reflect the anticipated Völker divestiture and the phasing of certain international orders in the fourth quarter,” president & CEO John Greisch said in prepared remarks. “We remain committed to driving sustained growth, executing our plans for margin expansion and achieving key strategic objectives to create long-term value for patients, customers and shareholders.”

Hill-Rom said it now expects to put up adjusted 2017 EPS of $3.80 to $3.84, down from its prior outlook for $3.82 to $3.88. Sales growth is forecast to be 3%, down from 3.5% to 4.0% previously.

For its fiscal fourth quarter, Hill-Rom forecast adjusted EPS of $1.26 to $1.30 on sales growth of 3% to 4%.

HRC shares, which closed down -3.5% at $79.70 apiece yesterday, were down another -2.7% to $77.59 per share this morning in pre-market trading.

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