Hillrom (NYSE: HRC) shares slightly dipped today on third-quarter results that beat the consensus forecast.
The Chicago-based company posted profits of $49.2 million, or 74¢ per share, on sales of $717.7 million for the three months ended June 30, 2021, for a -47.6% bottom-line slide on a sales decline of -6.5%.
Adjusted to exclude one-time items, earnings per share were $1.38, 4¢ ahead of Wall Street, where analysts were looking for sales of $708.3 million.
In the company’s earnings call, transcribed by SeekingAlpha, Hillrom president & CEO John Groetelaars addressed the company’s u-turn on a planned deal to acquire BardyDx, which a court in Delaware ruled the company must complete, confirming that the Hillrom expects the acquisition to close next week.
“Even with recent reimbursement decisions, we have renewed confidence in the underlying strength of the Bardy business, the value Bardy solutions provide to caregivers and patients and the opportunities that lie ahead for the Bardy portfolio as part of Hill-Rom,” Groetelaars said. “Although this didn’t turn out as originally contemplated, we believe there is a compelling strategic rationale for the acquisition. Bardy’s differentiated diagnostic cardiology platform is complementary and further strengthens Hill-Rom’s existing cardiology portfolio and our connected care vision.”
Groetelaars and other executives made no mention of the rumored acquisition of the company by Baxter, however.
Hillrom noted that profit and revenue dips were particularly spurred by the company’s third-quarter performance in 2020, which benefited from a surge in one-time COVID-19-related revenue of approximately $130 million and adjusted EPS of $0.60.
“Our dedicated, global team continues to support customers’ evolving needs and we remain encouraged by the building momentum and recovery in our underlying business. This resulted in third-quarter financial performance that exceeded expectations, illustrating the benefits of Hillrom’s accelerated transformation, the resiliency of our portfolio, and our ongoing commitment to advancing connected care,” Groetelaars said in a news release. “As we look forward, we remain committed to driving sustainable and profitable growth, achieving our strategic objectives, and unlocking significant value for patients, caregivers and shareholders as we deliver on our mission.”
Hillrom said it now expects to log full-year adjusted EPS of $6.08 to $6.12, a rise from the previously projected range of between $6 and $6.10. The company expects revenues to increase by between 3% and 4% year-over-year.
HRC shares were down -0.9% at $135.63 per share in midday trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.4%.