Hill-Rom Holdings, Inc. - Momentum
June 05 2011 - 8:00PM
Zacks
Hill-Rom Holdings, Inc. (HRC) remains glued to its recent
52-week high after reporting another strong quarter in late April.
With estimates on the upswing and a bullish growth projection, this
Zacks #1 rank stock doesn't rest for momentum.
Company Description
Hill-Rom Holdings, Inc. provides medical
technologies with a specialty in beds for the healthcare industry
worldwide. The company was founded in 1969 and has a market cap of
$2.9 billion.
HRC had been looking a bit weak early in the year
before shares began recovering and heading higher in early March.
The reversal came directly ahead of the company's strong Q1 results
from late April that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 13% from last year to
$402 million. Earnings also came in strong at 54 cents, 8% ahead of
the Zacks Consensus Estimate, where the company has an average
earnings surprise of 24% over the last four quarters.
The good quarter was driven by the company's
largest segment, with North American Acute Care increasing 15% to
$251 million. International sales, excluding Canada, were also
strong, increasing 12% to $99 million.
Financial Profile
Hill-Rom has used its recent earnings momentum to
strengthen its balance sheet, with cash and short-term investments
up $74 million from last year to $235 million against total debt
$154 million, mostly in line with last year.
Estimates
We saw some decent movement in estimates off the
good quarter, with the current year adding 9 cents to $2.33 and the
next-year estimate gaining 12 cents to $2.64, a bullish 13.5%
growth projection.
Valuation
But in spite of the recent gains, the valuation
picture still looks solid, with HRC's forward P/E of 20X a discount
to its peer average of 21X.
12-Month Chart
On the chart, HRC has been trading strong since
early March, recently hitting a new all-time high on the good
quarter and higher guidance. Look for support from the long-term
trend on any weakness, take a look below.
HILL-ROM HLDGS (HRC): Free Stock Analysis Report
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