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Jun 30, 2020
Hillenbrand Q3 2020 Earnings Report
Hillenbrand's Q3 2020 results were announced, showcasing a significant revenue increase due to the Milacron acquisition, alongside solid operating results amidst a challenging market environment.
Key Takeaways
Hillenbrand reported a 36% increase in revenue to $608 million, driven by the acquisition of Milacron. GAAP EPS decreased by 33% to $0.32, while adjusted EPS increased by 25% to $0.81. The company is increasing its Milacron cost synergy target and exiting the TerraSource and Flow Control businesses.
Revenue increased 36% year over year to $608 million due to the addition of Milacron.
Adjusted EPS increased 25% to $0.81, driven by Milacron and Batesville.
Order backlog increased 20% year over year to $1.12 billion.
Milacron 3-year cost synergy target increased from $50 million to $75 million.
Forward Guidance
Hillenbrand is providing guidance for the fourth quarter of fiscal 2020, expecting relatively flat total revenue sequentially and adjusted EPS in the range of $0.60 to $0.70.
Positive Outlook
- Process Equipment Group revenue is expected to be modestly higher, driven by sequential growth in large plastics projects and aftermarket parts and service.
Challenges Ahead
- Milacron revenue is expected to decrease modestly.
- Hot runner sales for medical projects related to COVID-19 are expected to decrease in the fourth quarter.
- Injection molding sales are expected to remain weak.
- Batesville revenue is forecasted to decrease modestly as a result of lower expected mortality associated with COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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