Benzinga | Apr 30, 2021 08:18AM EDT

Hillrom Second Earnings Exceed Expectations; Raises Fiscal 2021 Outlook

* Hillrom (NYSE: HRC) reported Q2 Non-GAAP earnings rose 35% at $1.73 and exceeded the company's guidance range of $1.40 to $1.45 and surpassed analyst consensus of $1.43. GAAP earnings of $1.30 higher than $0.70 in the prior-year period.

* "Broad-based recovery continues to build across our portfolio, resulting in stronger-than-expected financial results for the fiscal second quarter," said John Groetelaars, Hillrom president and CEO.

* For Q2, the revenue of $762 million beat the consensus of $732.2 million, increased 5% on a reported basis, or 3% on a constant currency basis, driven by recovery across all three business segments, as higher demand for critical care products.

* One-time COVID purchases contributed revenue of approximately $40 million and adjusted earnings of $0.20 per diluted share.

* Guidance: The company raised its full-year outlook and expected revenue to increase 1% to 3% on a reported basis.

* It sees FY adjusted earnings in the range of $6.00 to $6.10 higher than the previous guidance range of $5.70 to $5.90, better than the analyst consensus of $5.82.

* It forecasted operating cash flow of $440 to $460 million versus prior guidance of $400 to $430 million.

* For Q3, Hillrom sees revenue to decline 7% to 9% on a reported basis, and adjusted earnings of $1.32 to $1.36 per diluted share, versus analyst consensus of $1.36

* Price Action: HRC shares are up 0.6% at $116 in the premarket session on the last check Friday.