The 10-second takeaway
For the quarter ended June 30 (Q3), Hillenbrand beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank.
Margins shrank across the board.
Hillenbrand logged revenue of $238.4 million. The three analysts polled by S&P Capital IQ expected to see revenue of $234.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $211.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The three earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.34 for Q3 were 5.6% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.1%, 270 basis points worse than the prior-year quarter. Operating margin was 13.8%, 360 basis points worse than the prior-year quarter. Net margin was 8.9%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $250.7 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $977.0 million. The average EPS estimate is $1.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 354 members rating the stock outperform and five members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Hillenbrand a green thumbs-up, and 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 $25.33.
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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 of Motley 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 recommend 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.