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Hill-Rom Holdings (HRC) Q2 Earnings: A Beat in the Cards?
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We expect Hill-Rom Holdings, Inc. to beat expectations when it reports second-quarter fiscal 2017 results, before market opens on Apr 28.
Last quarter, the company’s earnings met the Zacks Consensus Estimate of 75 cents. However, in the last four quarters, Hill-Rom Holdings’ earnings outpaced the Zacks Consensus Estimate at an average of 3.11%. Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Hill-Rom Holdings is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: Hill-Rom Holdings has an Earnings ESP of +1.27% as the Most Accurate estimate is pegged at 80 cents while the Zacks Consensus Estimate is at 79 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hill-Rom Holdings currently carries a Zacks Rank #2 (Buy). Note that stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The combination of Hill-Rom Holdings’ Zacks Rank #2 and +1.27% ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-Than-Expected Earnings?
Hill Rom Holdings’ operating performance has been quite encouraging of late based on successful execution of its strategic priorities. These priorities include planned international expansion, innovation, portfolio transformation through accretive acquisition and non-core divestiture.
The company consistently invests in Research and Development programs, including the recent launch of Welch Allyn Home Hypertension Program which allows patients to monitor blood pressure levels outside the physician office. The company also enjoys strong hold in the Diabetic retinopathy space. We believe this momentum should continue with the recently launched RetinaVue 100 Imager, a breakthrough handheld technology for primary care settings.
Last quarter, the company introduced the Envella Air Fluidized Therapy bed with an advanced surface that provides highest quality of wound care and faster healing.
We also take note of Hill-Rom Holdings’ marketed product, Integrated Table Motion for the da Vinci Xi Surgical System, which has already garnered significant customer acceptance and has provided satisfactory results in the last reported first quarter of fiscal 2017.
Hill-Rom Holdings has also designed and developed a new TruSystem 3000 Mobile Operating Table. This cost-effective, reliable and flexible operating table enhances the Surgical Solutions product portfolio.
We expect all these product introductions to drive positive results in the yet-to-be reported quarter.
With respect to strategic takeovers, the company acquired diagnostic cardiology and patient monitoring technology company Mortara Instrument in the month of February. This acquisition should help Hill-Rom Holdings expand its diagnostic cardiology franchise. It will also complement and enhance its Welch Allyn-line’s presence in vital signs monitoring and drive Hill Rom Holdings’ second-quarter revenues.
We are also optimistic about the company’s plans to rebound its international business from the second quarter. Notably, the business has been disappointing in the past few quarters on challenging macroeconomic environment in international markets. A gradually stabilizing U.S. eco-political environment and favorable international comparisons are expected to accelerate international revenue growth for the remainder of the year.
The recent strategic non-core asset divestitures which include the architectural products business and WatchChild are also expected to drive the company’s top line.
Other Stocks to Consider
Here are some other companies you may consider as our model shows that they also have the right combination of elements to post an earnings beat in the upcoming quarter:
CSX Corporation (CSX - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #2.
Preferred Bank (PFBC - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank #2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Hill-Rom Holdings (HRC) Q2 Earnings: A Beat in the Cards?
We expect Hill-Rom Holdings, Inc. to beat expectations when it reports second-quarter fiscal 2017 results, before market opens on Apr 28.
Last quarter, the company’s earnings met the Zacks Consensus Estimate of 75 cents. However, in the last four quarters, Hill-Rom Holdings’ earnings outpaced the Zacks Consensus Estimate at an average of 3.11%. Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Hill-Rom Holdings is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: Hill-Rom Holdings has an Earnings ESP of +1.27% as the Most Accurate estimate is pegged at 80 cents while the Zacks Consensus Estimate is at 79 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hill-Rom Holdings Inc Price and EPS Surprise
Hill-Rom Holdings Inc Price and EPS Surprise | Hill-Rom Holdings Inc Quote
Zacks Rank: Hill-Rom Holdings currently carries a Zacks Rank #2 (Buy). Note that stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The combination of Hill-Rom Holdings’ Zacks Rank #2 and +1.27% ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-Than-Expected Earnings?
Hill Rom Holdings’ operating performance has been quite encouraging of late based on successful execution of its strategic priorities. These priorities include planned international expansion, innovation, portfolio transformation through accretive acquisition and non-core divestiture.
The company consistently invests in Research and Development programs, including the recent launch of Welch Allyn Home Hypertension Program which allows patients to monitor blood pressure levels outside the physician office. The company also enjoys strong hold in the Diabetic retinopathy space. We believe this momentum should continue with the recently launched RetinaVue 100 Imager, a breakthrough handheld technology for primary care settings.
Last quarter, the company introduced the Envella Air Fluidized Therapy bed with an advanced surface that provides highest quality of wound care and faster healing.
We also take note of Hill-Rom Holdings’ marketed product, Integrated Table Motion for the da Vinci Xi Surgical System, which has already garnered significant customer acceptance and has provided satisfactory results in the last reported first quarter of fiscal 2017.
Hill-Rom Holdings has also designed and developed a new TruSystem 3000 Mobile Operating Table. This cost-effective, reliable and flexible operating table enhances the Surgical Solutions product portfolio.
We expect all these product introductions to drive positive results in the yet-to-be reported quarter.
With respect to strategic takeovers, the company acquired diagnostic cardiology and patient monitoring technology company Mortara Instrument in the month of February. This acquisition should help Hill-Rom Holdings expand its diagnostic cardiology franchise. It will also complement and enhance its Welch Allyn-line’s presence in vital signs monitoring and drive Hill Rom Holdings’ second-quarter revenues.
We are also optimistic about the company’s plans to rebound its international business from the second quarter. Notably, the business has been disappointing in the past few quarters on challenging macroeconomic environment in international markets. A gradually stabilizing U.S. eco-political environment and favorable international comparisons are expected to accelerate international revenue growth for the remainder of the year.
The recent strategic non-core asset divestitures which include the architectural products business and WatchChild are also expected to drive the company’s top line.
Other Stocks to Consider
Here are some other companies you may consider as our model shows that they also have the right combination of elements to post an earnings beat in the upcoming quarter:
Angie's List, Inc. (ANGI - Free Report) has an Earnings ESP of +40.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
CSX Corporation (CSX - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #2.
Preferred Bank (PFBC - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank #2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>