Hillenbrand Misses on Revenues but Beats on EPS

Seth Jayson, The Motley Fool

Hillenbrand (NYS: HI) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Hillenbrand missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Hillenbrand booked revenue of $232.0 million. The three analysts polled by S&P Capital IQ predicted revenue of $239.7 million. Sales were 9.8% higher than the prior-year quarter's $211.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.40. The two earnings estimates compiled by S&P Capital IQ forecast $0.36 per share on the same basis. GAAP EPS of $0.50 for Q1 were 16% higher than the prior-year quarter's $0.43 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.5%, 270 basis points worse than the prior-year quarter. Operating margin was 14.2%, 600 basis points worse than the prior-year quarter. Net margin was 13.5%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $262.9 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $997.6 million. The average EPS estimate is $1.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 338 members out of 345 rating the stock outperform, and seven members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Hillenbrand a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hillenbrand is outperform, with an average price target of $27.00.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Hillenbrand. Motley Fool newsletter services have recommended buying shares of Hillenbrand. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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