Hill-Rom (HRC) Q1 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Hill-Rom Holdings, Inc. (NYSE:HRC) is scheduled to report Q1 earnings results on January 24, 2020 before markets open for trading. The company is expected to report earnings of $1.08/share on revenue of $684.6 million. The consensus earnings per share (EPS) of $1.08/share is based on a poll of 8 analysts and represents a growth of 5.9% over the same quarter last year when the company reported earnings of $1.02/share.

The revenue forecast of $684.6 million based on a poll of 6 analysts implies a year-over-year (YoY) growth of 0.2%. Last year the company reported $683.5 million in revenue for the quarter.

Expected to report EPS growth of $0.06/share for Q1, 2019
Metric Expected Prior Year YoY Change
Revenue $684.62 $683.50 0.2%
EPS $1.08 $1.02 5.9%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Hill-Rom for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q4, 2019 $1.65 $1.69 2.4% Beat
Q3, 2019 $1.22 $1.23 1.0% Beat
Q2, 2019 $1.10 $1.14 3.2% Beat
Q1, 2019 $0.98 $1.02 4.1% Beat
Q4, 2018 $1.51 $1.63 7.9% Beat
Q3, 2018 $1.13 $1.15 1.8% Beat
Q2, 2018 $1.02 $1.05 2.9% Beat
Q1, 2018 $0.82 $0.92 12.2% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 3.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-11-01 $104.69 $107.91 3.1% Increase
2019-08-02 $107.96 $103.92 -3.7% Decline
2019-04-26 $97.13 $102.06 5.1% Increase
2019-01-25 $97.45 $102.23 4.9% Increase

Fundamentals And Technical Analysis

Hill-Rom is currently trading at $115.14/share, down -0.5% for the day. The company is trading at approximately 98.3% of its 52-week high of $117.10/share. The company’s stock price is up 6.7% since the last earnings report and down -0.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 69.81 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:HRC Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 50.9x and a forward P/E multiple of 20.8x.

Hill-Rom’s current share price also implies a price-to-book (P/B) multiple of 4.9x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q4
Period End Date September 30, 2019
Stock Price (Current) $115.14
P/E Ratio 50.9x
P/E Ratio (Fwd) 20.8x
PEG Ratio 1.8
Total Debt to Capital (%) 24.0%
Levered Free Cash Flow $328 million
Enterprise Value / EBITDA 17.9x

Source: Finbox

Company Profile: Hill-Rom Holdings, Inc.

Hill-Rom Holdings, Inc. is a mid-cap stock with a market capitalization of $7.75 billion and a total enterprise value of $9.987 billion. The company operates in the Healthcare sector and the Healthcare Equipment & Supplies industry.

Hill-Rom operates as a medical technology company worldwide. It operates in Patient Support Systems, Front Line Care, and Surgical Solutions segments.

The company offers medical-surgical beds, intensive care unit beds, and bariatric patient beds, lifts and other devices, non-invasive therapeutic products and surfaces, and information technologies and software solutions, as well as sells equipment service contracts for its capital equipment. It also provides patient monitoring and diagnostics products, such as patient exam and diagnostics, patient monitoring, diagnostic cardiology, vision screening, and diagnostics products; and respiratory health products comprising Vest System, VitalCough System, MetaNeb System, Monarch, and Life2000 systems to assist patients in the mobilization of retained blockages.

The company also offers surgical solutions that include surgical tables, lights, and pendants; positioning devices for use in the shoulder, hip, spinal, and lithotomy surgeries, as well as platform-neutral positioning accessories for operating room tables. Further, it is involved in the sales and rental of products to acute and extended care facilities through direct sales force and distributors; sales and rental of products directly to patients in the home; and sales to primary care facilities through distributors. Additionally, the company offers a continuum of clinical care, including acute care and primary care, as well as clinical research organizations.

Hill-Rom Holdings, Inc. was founded in 1969 and is headquartered in Chicago, Illinois.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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