This medical equipment company beat earnings estimates by $0.04 last quarter.
Hill-Rom Holdings, Inc. (HRC)
From Dow Theory Forecasts
Hill-Rom Holdings, Inc. (HRC) is being added to the Buy and Long-Term Buy lists. With a market value of $6.7 billion, Hill-Rom is one of the smaller companies we recommend. But its defensive posture and solid operating momentum offer a compelling combination.
Hill-Rom supplies hospital beds, surgical tools, and diagnostic and monitoring equipment.
The shares rallied on a robust December-quarter report that topped consensus estimates. Despite modest sales gains, up 3% for 12 months ended December, Hill-Rom is generating strong growth for per-share profits, up 27%, and operating cash flow, up 25%.
The launch of new products should support future growth, with per-share profits projected to rise 11% in the March quarter and 8% for fiscal 2019 ending September.
Richard Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, February 4, 2019