What Happened?
Shares of industrial processing equipment and solutions provider Hillenbrand (NYSE:HI) fell 6.8% in the afternoon session after the company reported a mixed quarter. While Hillenbrand exceeded analysts' revenue and EPS expectations, its full-year revenue, EPS, and EBITDA guidance fell short of Wall Street's estimates. The company cited a challenging macro environment. Overall, this was a softer quarter due to the outlook.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hillenbrand? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Hillenbrand’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 15.1% on the news that the company reported strong third-quarter results which blew past analysts' revenue and EBITDA estimates. Revenue improved sequentially despite a challenging demand environment for the business as customers delayed purchases in some end markets. On the other hand, its full-year EPS guidance missed significantly, and its revenue guidance for next quarter fell meaningfully short of Wall Street's estimates. Overall, this was a mixed yet decent quarter, with the results indicating improved execution.
Hillenbrand is up 3.9% since the beginning of the year, but at $31.65 per share, it is still trading 37.1% below its 52-week high of $50.29 from March 2024. Investors who bought $1,000 worth of Hillenbrand’s shares 5 years ago would now be looking at an investment worth $1,102.
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