) is scheduled to report third-quarter fiscal 2014 (ended Jun 2014)
results on Aug 6 after the market closes.
In the preceding quarter, Hillenbrand reported impressive results.
Adjusted net income grew 12.4% year over year while earnings came
in at 54 cents per share, up 10.2% from 49 cents reported in the
However, Hillenbrand's top-line results were weak as net revenues
inched down 0.4% year over year to $396.8 million. The poor
performance was due to lower revenue generation from the Batesville
segment, offset partially by an increase recorded in the Process
Equipment Group segment. Cost of sales declined 4% year over year
while operating expenses slipped 7.8%.
Hillenbrand's Process Equipment Group segment deals in process and
material handling equipment and systems, serving diversified
industries including packaged foods, pharmaceuticals, plastics,
energy, minerals, fertilizers and petrochemicals. With the global
economy growing, demand for industrial products is on the rise. At
the end of second-quarter fiscal 2014, the segment recorded an
all-time high order backlog of $717 million. This will eventually
materialize into revenues in the quarters ahead.
Also, the company's Batesville segment, one of the leading
death-care products manufacturers in North America, would benefit
from its integrated death care solutions and customized products.
Hillenbrand remains committed towards rewarding its shareholders
handsomely. Its annual dividend has grown by 6.8% to 78 cents per
share in the past five years. However, risks associated with
negative foreign currency translations and stiff business
competition limit the company's growth prospects in the near term.
Hillenbrand presently carries a Zacks Rank #3 (Hold). Better-ranked
companies in the industry include Ingersoll-Rand Plc (
), Badger Meter Inc. (
) and Roper Industries Inc. (
). All these stocks carry a Zacks Rank #2 (Buy).
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