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  "docSlug": "97e66c73c118",
  "documentTitle": "Hill-Rom Holdings, Inc. (HRC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-10-29 00:00:00",
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  "pageNumber": 10,
  "pageCount": 80,
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  "notes": "The slide uses a table to build up the revenue calculation and a line chart to visualize the implied growth acceleration.",
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      "kind": "callout",
      "text": "Consensus estimates imply extremely unlikely Q4 core growth ex-new products",
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      "text": "organic core revenue growth: 4.1%",
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      "text": "Spruce Point believes that it is highly unlikely that organic core growth excluding new products will grow a whopping 300-650 bps above its trailing eight-quarter average in Q4 FY19. We believe that this may put Hill-Rom in a position to miss sell-side estimates for core growth.",
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      "text": "Spruce Point estimates that, for Hill-Rom to hit consensus revenue estimates for Q4 FY19 against the recent plateau in new product sales growth, the Company would have to produce organic core revenue growth of between 3.4% and 4.1% excluding incremental new product sales.",
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      "text": "Revenue buildup table showing Q4 FY18 vs Q4 FY19E under 50% and 85% incremental contribution scenarios.",
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      "kind": "title",
      "text": "Hill-Rom Set Up For A Q4 Miss Due to Sell-Side's Misunderstanding of Underlying Growth?",
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      "evidence": "The document identifies multiple problems with Hill-Rom's financial practices and growth prospects, including slowing growth, margin stagnation, and aggressive accounting.",
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