Hillenbrand Will Be Able To Achieve Its Updated Guidance, Setting Stage For FY25: Analyst

Core Viewpoint - The analyst projects that Hillenbrand Inc (HI) will achieve its updated fiscal year (FY) guidance, setting the stage for momentum into FY25 despite current cyclical concerns [2][4]. Financial Performance - Hillenbrand Inc expects adjusted earnings per share (EPS) of $3.30 to $3.50 for FY24, down from a prior view of $3.60 to $3.95. The analyst forecasts FY24 EPS at $3.35 with revenues of $3.253 billion [8]. - The company has experienced a slowdown in short-cycle hot-runners during FY23 and early FY24, with a higher proportion of longer-cycle, lower-margin injection molding machines negatively impacting margins [9]. Market Dynamics - Current cyclical dynamics are described as choppy, but there are signs of leading indicators improving from trough levels, which should positively affect the MTS business and its expected ramp in the second half of FY24 [5]. - The trend is anticipated to reverse through the remainder of FY24, approaching long-term targets by FY26 [7]. Analyst Coverage - KeyBanc Capital Markets analyst Jeffrey D. Hammond initiated coverage on Hillenbrand Inc with a price forecast of $50, indicating a potential for the shares to re-rate higher despite near-term cyclical concerns [6][10]. - HI shares are currently trading higher by 6.79% to $40.56 [11].