Hill-Rom shares dip on Q1 miss

Shares in Hill-Rom (NYSE:HRC) have dipped today after the company missed expectations on The Street with its 1st quarter earnings results.

The Chicago-based company posted profits of $23.5 million, or 36¢ per share, on sales of $637.4 million for the 3 months ended Dec. 31st, for massive bottom-line growth of 446% while sales shrunk 3.6% compared with the same period in the previous fiscal year.

After adjusting to exclude 1-time items, earnings per share were 75¢, behind the 83¢ consensus on The Street, where analysts were looking for sales of $649 million.

“Hill-Rom delivered solid earnings in the 1st quarter and made progress in expanding our capabilities, capitalizing on new product introductions, and partnering with customers to enhance outcomes for patients and their caregivers. Our performance and outlook reflect our commitment to drive sustainable performance through focused commercial and operational execution, and strategic investments that create long-term value for patients, customers and shareholders,” CEO & prez John Greisch said in a press release.

Hill-Rom said it expects to post adjusted earnings per share of between $3.74 and $3.82 for the full year, with between $330 and $340 million in operating cash flow. For the upcoming 2nd quarter, the company said it expects to report between 77¢ and 79¢, with core revenue increasing 4% to 5%.

“We remain focused on executing our strategic priorities, leveraging Hill-Rom’s strong global brands and geographic footprint, and launching new innovations to ensure sustained growth and profitability in the years ahead. With strong growth prospects and margin expansion opportunities, we are confident in our ability to achieve our 2017 guidance and long-term objectives,” Greisch said in a prepared statement.

Shares in Hill-Rom have dipped 2.2% to $58.33 in mid-day trading.

Earlier this month, Hill-Rom said that it agreed to put up $300 million for Mortara Instrument and its line of diagnostic cardiology and patient monitoring devices, not including a $40 million “tax benefit” the company expects to gain by structuring the buyout a certain way.

Milwaukee-based Mortara makes an eponymous line of cardiac monitoring devices, plus the Quinton and Burdick brands it acquired from Opko’s Cardiac Science in 2013. The company, which employs more 400 workers, posted sales of $115 million last year, Chicago-based Hill-Rom said.

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