Hillenbrand, Inc. (HI) reported adjusted earnings of 57 cents per share for third-quarter fiscal 2014 (ended Jun 2014). The bottom-line grew 18.8% from 48 cents earned in the year-ago quarter.
Revenues
Hillenbrand generated net revenues of $416.8 million, up 2.0% year over year, primarily driven by improved revenues from the Process Equipment Group.
The company’s segmental results are discussed below:
Revenues from the Process Equipment Group were $274 million, reflecting a year-over-year increase of 5%, or 2% on a constant currency basis. Order backlog was $731 million versus $572 million at the end of the year-ago quarter.
Batesville segment’s revenues declined 4%, or 3% on a constant currency basis, to $143 million. Lower number of burials in North America adversely impacted selling price and volumes.
Margins
Hillenbrand’s cost of sales was relatively flat at $267.6 million and, as a percentage of revenue, was 64.2% versus 65.4% in the prior-year quarter. Gross margin climbed 120 basis points (bps) to 35.8%. Operating expenses, as a percentage of revenue, were 22.3%, down from 22.4% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $71 million, up 11% year over year. EBITDA margin came in at 17.0%.
Balance Sheet/ Cash Flow
Exiting third-quarter fiscal 2014, Hillenbrand had cash and cash equivalents of $61.7 million versus $51 million in the preceding quarter.
In the nine months ended Jun 2014, Hillenbrand generated cash of $136.9 million from its operating activities as against $50.8 million produced in the year-ago comparable period.
Outlook
For fiscal 2014, Hillenbrand maintained its revenue guidance at approximately $1.7 billion, including contributions of $1.1 billion from the Process Equipment Group and roughly $600 million from the Batesville segment. Top-line result is expected to gain 1% from favourable currency translation impacts. Adjusted earnings are anticipated in a range of $2.00−$2.10 per share.
With a market capitalization of $1.9 billion, Hillenbrand currently carries a Zacks Rank #3 (Hold). Better-ranked companies in the industry include Ingersoll-Rand Plc (IR), Badger Meter Inc. (BMI) and Roper Industries Inc. (ROP). All these stocks hold a Zacks Rank #2 (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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment