Hill-Rom Holdings, Inc. HRC reported third-quarter fiscal 2021 adjusted earnings per share ("EPS") of $1.38, excluding the impact of certain one-time expenses. The figure declined 29.2% from the year-ago quarter, but surpassed the Zacks Consensus Estimate by 2.9%.The adjustments include acquisition-related intangible asset-amortization expenses, debt-refinancing costs and others.On a GAAP basis, earnings were 74 cents per share, registering a 47.1% decline from the year-ago reported figure.Revenues in the fiscal third quarter came in at $717.7 million, down 6.5% from the year-ago quarter (down 8.8% at constant exchange rate or CER). The top line beat the Zacks Consensus Estimate by 1.7%. The year-over-year decline in earnings and revenues can be attributed to the challenging comparison with third-quarter fiscal 2020 figures that benefited from a one-time surge in COVID-19-related demand.Quarter in DetailsGeographically, in the reported quarter, U.S. revenues fell 1.1% on a reported basis and international revenues recorded a 23.9% decline on a constant-currency basis.Segmental UpdatePatient Support Systems revenues of $376 million declined 16% year over year on a reported basis and 18% on a constant-currency basis. Excluding last year's one-time COVID-19-related revenues, the segment’s revenues increased 11% on a reported basis or 9% at CER, which is indicative of a normalized demand for bed systems and rentals, as well as strong demand for the company’s Care Communications platforms.HillRom Holdings, Inc. Price, Consensus and EPS Surprise HillRom Holdings, Inc. price-consensus-eps-surprise-chart | HillRom Holdings, Inc. QuoteRevenues at the Front Line Care segment improved 5.5% year over year to $265.9 million (up 3% at CER). Excluding last year's one-time Life2000 non-invasive ventilator stockpile orders, the segment’s revenues increased 17% on a reported basis (14% at CER). The strong performance across the segment was driven by accelerated recovery across key Welch Allyn products as physician office visits return to pre-COVID-19 levels, and continued contributions from new products, including the RetinaVue imager for screening of diabetic retinopathy.The Surgical Solutions segment’s revenues improved 11.9% year over year (up 8% at CER) to $75.7 million. Growth in this segment reflects an increase in demand for operating room tables, including record placements of Integrated Table Motion and patient positioning products as surgical procedures rebound. This growth was more than offset, given the completed divestment of the international surgical OEM business.MarginIn the reported quarter, gross profit totaled $374.5 million, down 8.4% year over year. Gross margin contracted 111 basis points (bps) to 52.2%.Selling, general and administrative expenses rose 6.7% to $215.9 million in the quarter under review, while research and development expenses increased 5.5% to $36.3 million.Overall adjusted operating profit was $122.3 million, down 29% year over year. Adjusted operating margin contracted 541 bps year over year to 17%.Cash PositionHill-Rom exited third-quarter fiscal 2021 with cash and cash equivalents of $272.5 million compared with $269.7 million at the end of the fiscal second quarter. Long-term debt for the company at the end of the fiscal third quarter was $1.48 billion compared with $1.63 billion at the end of the second quarter of fiscal 2021.The company returned $186 million to shareholders through dividends and share repurchases during the third quarter of fiscal 2021.At the end of the fiscal third quarter, cumulative net cash provided by operating activities was $410.4 million compared with $314.8 million at the end of the year-ago period.Fiscal 2021 GuidanceHill-Rom has updated its fiscal 2021 guidance.For fiscal 2021, the company now expects revenue growth in the range of 3% to 4% on a reported basis. This is an improvement from the April-announced guidance range of 1% to 3% growth. The Zacks Consensus Estimate for fiscal 2021 revenues is pegged at $2.94 billion.Adjusted EPS is now projected in the range of $6.08-$6.12 (an increase from the earlier guidance of $6.00-$6.10). The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $6.06.Operating cash flow is expected to be approximately $480 million. This compares with the company's previous guidance of operating cash flow of $440 to $460 million.It also provided guidance for the fourth quarter of fiscal 2021. Hill-Rom expects revenues to improve 6-7% on a reported basis and adjusted earnings, excluding special items, of $1.44 to $1.48 per share.The Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings is pegged at $1.53. The Zacks Consensus Estimate for revenues is pegged at $732 million.Our TakeHill-Rom exited third-quarter fiscal 2021 with better-than-expected earnings and revenues. The year-over-year growth in Front Line Care (led by accelerated recovery across key Welch Allyn products) and Surgical Solutions (led by growth in demand for operating room tables) segments contributed to the top-line growth. The company’s recent launches year-to-date, including the Helion Integrated Surgical System for the United States market, buoy optimism. Its raised financial guidance for 2021, calling for growth in revenues and earnings, is encouraging.However, Hill-Rom saw a year-over-year decline in both revenues and earnings. A decline in gross profit is concerning. Contraction of both margins does not bode well either.Zacks Rank and Other Key PicksHill-Rom currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader medical space that have announced their quarterly results are Edwards Lifesciences Corporation EW, West Pharmaceutical Services, Inc. WST and Chemed Corporation CHE, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Edwards Lifesciences reported second-quarter 2021 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 16.4%. Second-quarter revenues of $1.38 billion outpaced the consensus mark by 7%.West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.Chemed reported second-quarter 2021 adjusted EPS of $4.60, surpassing the Zacks Consensus Estimate by 3.4%. Revenues of $532.3 million surpassed the Zacks Consensus Estimate by 0.8%. 5 Stocks Set to Double Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Edwards Lifesciences Corporation (EW): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report HillRom Holdings, Inc. (HRC): Free Stock Analysis Report Chemed Corporation (CHE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research