What To Expect From Hillenbrand’s (HI) Q3 Earnings

Industrial processing equipment and solutions provider Hillenbrand (NYSE:HI) will be reporting earnings tomorrow after market hours. Here’s what to look for.

Hillenbrand missed analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $786.6 million, up 9.8% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations and underwhelming earnings guidance for the next quarter.

Is Hillenbrand a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Hillenbrand’s revenue to grow 4% year on year to $793.3 million, slowing from the 26.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hillenbrand has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Hillenbrand’s peers in the general industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Luxfer delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 15.9%, and Kadant reported revenues up 11.2%, topping estimates by 2%. Luxfer traded up 14.4% following the results while Kadant was also up 4.6%.

Read our full analysis of Luxfer’s results here and Kadant’s results here.

There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 6.3% on average over the last month. Hillenbrand is up 19.8% during the same time and is heading into earnings with an average analyst price target of $46.80 (compared to the current share price of $31.85).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.