If you're going to run a boring business in med-tech, you had better run it well or nobody will care about the stock. Hill-Rom (HRC) is undoubtedly in a boring business (hospital beds, movement products, surfaces, and so on), but the execution has been more mixed. Margins here are broadly inferior to many other durable equipment companies and the company has lost some of its strangle-hold on the market to Stryker (SYK). With management giving a disappointing early look at first quarter numbers and trimming full-year expectations, Hill-Rom's stock may be on its back for a little while.
Fiscal First Quarter Earnings Following A Trend
Hill-Rom announced late Tuesday that results for the first quarter were going to come in short of Wall Street expectations. Revenue apparently came in at about $381 million, matching the low end of the analyst range and representing just 2% constant currency growth. Earnings are also going to miss, with the company expecting $0.52 or $0.53 instead of the average estimate of $0.55.
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Hill-Rom Needs Bedrest, But Should Recover
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