Hillrom (NYSE:HRC) shares remain up after Street-beating first-quarter results and a raised 2021 guidance.
The Chicago-based company posted profits of $58 million, or 88¢ per share, on sales of $741.1 million for the three months ended Dec. 31, 2020, for a 47.7% bottom-line gain on sales growth of 8.2%.
Adjusted to exclude one-time items, earnings per share were $1.53, 48¢ ahead of Wall Street, while the company topped analysts’ revenue estimates by 13.2%.
Each of Hillrom’s three business segments (patient support, front-line care and surgical solutions) produced better-than-expected results with accelerated recovery and expanded demand for critical care products amid the COVID-19 pandemic.
The company noted in a Feb. 5 news release that one-time COVID-19 revenue reached about $40 million, registering COVID-19-related EPS of 20¢ per share.
“Hillrom’s strong start to fiscal 2021 underscores our significant transformation and the diversity of our product portfolio,” Hillrom president & CEO John Groetelaars said in the release “We continue to support our global customers, deliver critical care products and solutions in response to the ongoing pandemic, and remain committed to our vision of Advancing Connected Care.”
Hillrom said it now expects to log full-year adjusted EPS of $5.70 to $5.90, compared with $5.25 to $5.45 previously, on revenue growth of between 0% and 2%. The company projects second-quarter revenues in the same growth range as the full-year estimates, with EPS expected to come in between $1.40 and $1.45 per share for the three months.
HRC shares were up 3.9% at $104.71 per share in mid-morning trading today. Share prices had previously gone as high as $106 per share on Friday after the results were released that morning. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.6%.
