Hillrom (NYSE:HRC) shares took a hard hit today despite third-quarter results that came in ahead of the consensus forecast.
Shares of HRC were down -14.4% at $99.06 per share in mid-morning trading today.
The Chicago-based company posted profits of $93.9 million, or $1.40 per share, on sales of $767.5 million for the three months ended June 30, 2020, for a nearly tripled bottom-line gain on sales growth of 5%.
Adjusted to exclude one-time items, earnings per share were $1.95, 49¢ ahead of Wall Street, where analysts were looking for sales of $749.4 million.
Hillrom said in a news release that accelerated demand for critical care products in response to the COVID-19 pandemic contributed to strong third-quarter revenues and profits, with its acquisition of Breathe Technologies helping to contribute more than $100 million for COVID-19-related purchases.
“I’d like to acknowledge the dedication and contributions of the entire Hillrom team for their extraordinary efforts to deliver critical products and solutions in response to the COVID-19 pandemic,” Hillrom president & CEO John Groetelaars said in the release. “Their responsiveness was instrumental in driving record financial performance during the fiscal third quarter.
“We remain confident in the compelling value propositions of our products, underlying fundamentals and sustainability of our diverse growth platforms as we continue to navigate the uncertain business and healthcare environment.”
Hillrom said it will not reinstate its sales guidance for the year because of the COVID-19 pandemic but did project its fiscal 2020 adjusted EPS to reach at least $5.40 per share. That projection comes in 14¢ behind The Street estimate of a full-year EPS totaling $5.54.
While Hillrom’s shares continue to slide, MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -1.5%.