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Hill-Rom (HRC) Hits New 52-Week High on Solid Q3 Results
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Shares of Hill-Rom Holdings, Inc. rallied to a new 52-week high of $59.45 on Aug 26, eventually closing a tad bit lower at $59.26. This represents a strong one-year return of approximately 11.18%, better than the S&P 500’s 9.06% over the same period.
Currently, Hill-Rom holds a Zacks Rank #2 (Buy). The stock has a market cap of $3.88 billion and a long-term expected earnings growth rate of 14.7%.
Notably, the company has witnessed an impressive 4.5% increase in its share price since the release of upbeat third-quarter fiscal 2016 results.
Growth Catalysts
Recently, Hill-Rom posted strong third-quarter results with a 39% surge in revenues to $655.4 million at Constant Exchange Rate or CER. The quarterly number also sailed past the Zacks Consensus Estimate of $647 million.
Adjusted earnings of 81 cents per share were up 31% year over year and also exceeded our estimate. In fact, adjusted earnings were ahead of the company’s expectation of 75–77 cents per share.
The major growth catalysts for the company over the recent past were solid improvement in U.S. revenues, integration with Welch Allyn, strong growth in the Asia-Pacific region and continued efforts for optimal operational execution across its various business segments.
Banking on such lucrative growth prospects, we believe Hill-Rom is well positioned for further growth in the long haul.
We note that on a year-over-year basis, U.S. revenue surged 47% to $451 million, while revenues outside the U.S. registered a massive increase of 24% at CER to $204 million, thanks to the addition of Welch Allyn.
Meanwhile, encouraged by the stellar third-quarter performance, management raised its fiscal 2016 guidance. The company now expects revenue to be approximately $2.65 billion, compared with the earlier issued guidance range of $2.64–$2.67 billion. Adjusted earnings are expected in the band of $3.32–$3.34 per share, up from the prior guidance of $3.26–$3.30.
The increase in full-year guidance is also indicative of the fact that the company is going to maintain this strong growth momentum in the coming quarters.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2016 increased by 6 cents to $3.33 over the last 30 days. Similarly, the estimate for fiscal 2017 has increased by the same amount (6 cents) to $3.77 over the same time frame.
Other Key Picks
Other well-ranked stocks in the broader medical sector include GW Pharmaceuticals Plc , NuVasive Inc and Quidel Corp. (QDEL - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Hill-Rom (HRC) Hits New 52-Week High on Solid Q3 Results
Shares of Hill-Rom Holdings, Inc. rallied to a new 52-week high of $59.45 on Aug 26, eventually closing a tad bit lower at $59.26. This represents a strong one-year return of approximately 11.18%, better than the S&P 500’s 9.06% over the same period.
Currently, Hill-Rom holds a Zacks Rank #2 (Buy). The stock has a market cap of $3.88 billion and a long-term expected earnings growth rate of 14.7%.
Notably, the company has witnessed an impressive 4.5% increase in its share price since the release of upbeat third-quarter fiscal 2016 results.
Growth Catalysts
Recently, Hill-Rom posted strong third-quarter results with a 39% surge in revenues to $655.4 million at Constant Exchange Rate or CER. The quarterly number also sailed past the Zacks Consensus Estimate of $647 million.
Adjusted earnings of 81 cents per share were up 31% year over year and also exceeded our estimate. In fact, adjusted earnings were ahead of the company’s expectation of 75–77 cents per share.
HILL-ROM HLDGS Price and Consensus
HILL-ROM HLDGS Price and Consensus | HILL-ROM HLDGS Quote
The major growth catalysts for the company over the recent past were solid improvement in U.S. revenues, integration with Welch Allyn, strong growth in the Asia-Pacific region and continued efforts for optimal operational execution across its various business segments.
Banking on such lucrative growth prospects, we believe Hill-Rom is well positioned for further growth in the long haul.
We note that on a year-over-year basis, U.S. revenue surged 47% to $451 million, while revenues outside the U.S. registered a massive increase of 24% at CER to $204 million, thanks to the addition of Welch Allyn.
Meanwhile, encouraged by the stellar third-quarter performance, management raised its fiscal 2016 guidance. The company now expects revenue to be approximately $2.65 billion, compared with the earlier issued guidance range of $2.64–$2.67 billion. Adjusted earnings are expected in the band of $3.32–$3.34 per share, up from the prior guidance of $3.26–$3.30.
The increase in full-year guidance is also indicative of the fact that the company is going to maintain this strong growth momentum in the coming quarters.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2016 increased by 6 cents to $3.33 over the last 30 days. Similarly, the estimate for fiscal 2017 has increased by the same amount (6 cents) to $3.77 over the same time frame.
Other Key Picks
Other well-ranked stocks in the broader medical sector include GW Pharmaceuticals Plc , NuVasive Inc and Quidel Corp. (QDEL - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>