Hillenbrand (NYSE: HI): Q4 Revenue Tops Estimates, Sales Decline

Hillenbrand, a provider of industrial processing equipment and solutions (NYSE: HI), exceeded Wall Street's revenue expectations for Q4 CY2024. However, sales declined by 8.6% year-over-year to $706.9 million.

Despite the revenue beat, Hillenbrand's guidance for next quarter's revenue was disappointing, falling short of analysts' estimates by 4.9% at $695 million. The company's non-GAAP profit per share of $0.56 exceeded analysts' consensus by 4.5%.

Key Q4 CY2024 Highlights:

* Revenue: $706.9 million (vs. analyst estimates of $695.5 million, 1.6% beat)
* Adjusted EPS: $0.56 (vs. analyst estimates of $0.54, 4.5% beat)
* Adjusted EBITDA: $97.1 million (vs. analyst estimates of $96.86 million, in line)

Full Year Guidance:

* Revenue: $2.71 billion (midpoint), down from $3.01 billion (10% decrease)
* Adjusted EPS: $2.63 (midpoint), down from $2.93 (11.8% decrease)
* EBITDA: $429 million (midpoint), below analyst estimates of $466 million

Company Overview:

Hillenbrand designs, manufactures, and sells highly engineered processing equipment for various industries, including general industrial machinery, automation, and food, health, and nutrition.

Revenue Growth:

* Five-Year Revenue Growth: 9.7% annualized, outperforming the average industrial company
* Two-Year Revenue Growth: 13.8% annualized, indicating strong and accelerating demand

Operating Margin:

* Five-Year Operating Margin: 12.9%, demonstrating high profitability within the industrials sector
* Recent Trend: Decrease of 2.7 percentage points over the last five years

Earnings Per Share (EPS):

* Five-Year EPS Growth: 4.2% compounded annual growth rate
* Two-Year EPS Growth: Decline of 7% annualized
* Q4 EPS: $0.56 (vs. same quarter last year: $0.69)
* Full-Year EPS Guidance: $3.18, a projected 2.7% decline

Market Outlook:

Wall Street analysts anticipate a 2.5% decline in revenue over the next 12 months, indicating potential headwinds for Hillenbrand's products and services.

Conclusion:

While Hillenbrand beat revenue and EPS expectations in Q4, its full-year guidance fell short of analysts' estimates. The stock declined by 7.9% after the earnings report. Investors should carefully consider the company's valuation, business fundamentals, and future outlook before making any investment decisions.