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Healing
Hillenbrand Sees 4Q Rev Decrease on Heels of Acquisition — Earnings Preview
16
Nov
Nov
By Emon Reiser
Hillenbrand Inc. is scheduled to report fiscal fourth-quarter earnings Wednesday after the market closes. Here’s what you need to know.
NET INCOME: The Batesville, Ind.-based casket and diversified industrials portfolio company is expected to have net income of $61.6 million, or 83 cents a share, down from $74 million, or 67 cents a share, in the year-ago period, according to FactSet.
ADJUSTED EARNINGS: The company is expected to post adjusted earnings of $1.01 a share, compared to 94 cents a share a year earlier, according to FactSet.
REVENUE: Hillenbrand’s fourth-quarter revenue is seen at $728.8 million, down from $755 million a year earlier, according to FactSet.
WHAT TO WATCH
SUPPLY CHAIN: Hillenbrand’s industrial backlog remains at record levels, including its parts and service divisions, due to supply-chain constraints. At the end of the company’s fiscal third quarter on June 30, its total backlog stood at $1.65 billion, according to an investor note from D.A. Davidson & Co. Demand remains strong, and that’s a good sign for the company’s margins moving forward.
DEATHS: Revenue was up for the company’s burial casket business last quarter, although Covid-19 mortality rates still remain at the year-ago lows seen after the delta wave, one analyst said. What’s more, the company said more families are opting for more-affordable cremation services.
ACQUISITION: Hillenbrand’s share value is expected to grow after the close of the EUR572 million acquisition of Linxis Group and the company’s stock buybacks. Analysts expect Hillenbrand to continue with M&A as a leading part of its growth strategy as it explores its options for its Batesville death-care business. In August, it completed the EUR79 million purchase of recycling systems company Herbold Meckesheim.
