Funeral service products company Hillenbrand Inc. (HI) said Monday its profit for the fourth quarter increased from last year, helped by lower income tax expenses. The company said it did record a 9 percent improvement in sales, which was offset by poor margins. Excluding items, earnings per share for the quarter topped Wall Street estimates, as did sales. Hillenbrand also gave a strong earnings outlook for the full year 2012, which is indicated to top the Street, sending its shares up by 4 percent in extended hours on the Nasdaq.
The Batesville, Indiana-based company reported fourth-quarter net income of $23.5 million or $0.38 per share, up from $20 million or $0.32 per share last year.
Excluding items, non-GAAP net income for the quarter was $29.2 million or $0.48 per share, compared to $24.6 million or $0.40 per share a year ago.
On average, four analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Hillenbrand reported revenue of $231 million for the quarter, an increase of 9 percent from $212 million last year. Wall Street analysts expected revenues of $218.80 million.
Hillenbrand said its Process Equipment Group sales surged 32 percent to $76.4 million. Excluding the impact of Rotex acquisition, revenue grew 17 percent.Batesville business revenue slighlty grew to $154.8 million from $154 million in the year-ago quarter.
But the topline growth was affected by gross margin that shrank to 39.2 percent from 41.8 percent in the prior year, hurt by higher commodity costs in the Batesville business along with inventory step-up charges related to the Rotex acquisition. The company also incurred higher operating costs, which further impacted results.
But offsetting these was a decrease in income tax expense to $8.5 million from $12.8 million in the same quarter last year.
Looking ahead to 2012, Hillenbrand expects GAAP earnings of $1.75 to $1.85 per share, and non-GAAP earnings of $1.82 to $1.92 per share. Revenues are expected to grow in the range of 13 to 17 percent.
Street analysts currently expect the company to earn $1.79 per share for the full year 2012.
CEO Kenneth Camp said, "Absent significant jolts to the world economy, we expect our strong growth in 2012 to drive us over the billion-dollar revenue mark. As we continue our transformation into a global diversified industrial enterprise, it's encouraging to see our strategy affirmed by the results we're delivering to our shareholders."
HI closed Monday's regular session at $21.14, up $1.54 or 7.86%, on the NYSE. In after hours, the stock gained $0.86 or 4.07%.
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