Hill-Rom Reports Net Loss In Q2; Reiterates Annual Earnings Outlook

(RTTNews) - Hill-Rom Holdings, Inc. (HRC), a manufacturer of hospital beds, furniture, and medical technology systems, Friday reported a net loss for the second quarter compared with profit last year, chiefly due to a rise in income tax expense, higher special charges and lower revenues.

The company reaffirmed its earnings outlook for 2014, while lowering its revenue expectations.

For the second quarter, the company reported a net loss of $3.3 million or $0.06 per share, compared with a profit of $22.3 million or $0.37 per share a year ago.

However, excluding certain items, the company reported earnings per share of $0.57, compared with $0.56 a year earlier.

On average, 8 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.51 for the quarter. Analysts' estimates typically exclude one-time items.

Special charges rose to $28.4 million from $2.9 million a year ago. Income tax expense increased to $28.6 million from $7.7 million a year earlier.

For the three months to March, adjusted EBITDA declined to $71.2 million from $74.2 million a year ago.

Revenues for the 3-month period totaled $415.3 million, down from $425.7 million a year earlier.

For 2014, the company continues to expect adjusted earnings of $2.18 to $2.28 per share. But it slashed its revenue guidance to a decline of around 4 to 5 percent, compared with the prior guidance of 2 to 4 percent decline.

Analysts expect earnings of $2.22 per share on revenues of $1.67 billion for the year.

For the third quarter, Hill-Rom forecasts adjusted earnings to be $0.56 to $0.60. Analysts expect quarterly earnings of $0.63.