Diversified industrial company Hillenbrand, Inc. (HI) recently reported better-than-estimated performance for the first quarter on both its top-line and bottom-line fronts.
Revenue increased 5.2% year-over-year to $728.4 million, outperforming estimates by $25.5 million. Earnings per share at $0.94 came in ahead of expectations by $0.05. This growth was attributable to strength in the large plastics projects in the Advanced Process Solutions segment and favorable pricing.
Total backlog with the company jumped 30% over the prior year to $1.72 billion. Notably, during the quarter, Hillenbrand announced a new share buyback program of $300 million.
With these developments in mind, let’s have a look at what’s changed in Hillenbrand’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Hillenbrand’s top risk category is Finance & Corporate, contributing 8 of the total 28 risks identified for the stock, compared to a sector average of 12 risk factors under the same category.
In its recent report, the company has added one key risk factor under the Finance & Corporate risk category.
Hillenbrand noted that it had authorized a stock buyback program of about $200 million in December 2018. While this program had no expiration date, the company terminated it in December 2021. At the same time, Hillenbrand introduced a new share buyback program of about $300 million. Under the previous program, Hillenbrand had repurchased about 3.4 million shares and classified them as treasury stock.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Hillenbrand by 5.6 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock based on activities of 4 hedge funds.
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