Jim Cramer and Action Alerts PLUS Director of Research, Jack Mohr, discuss why they're bullish on Halyard Health following the company's convincing 4Q'14 earnings beat Wednesday morning. Halyard Health is a global hospital supplies and medical devices company that, since being spun out from Kimberly-Clark in November, has emerged a cleaner, leaner, stronger and more focused entity. Prior to the spin-off, Halyard was hidden behind Kimberly-Clark's vastly bigger consumer goods business, contributing a mere 4% of sales. As a non-core asset, Halyard was starved of capital, limiting its ability to pursue its own distinct strategies and operational priorities, which had diverged over time from the rest of the business. As an independent entity, however, HYH has access to capital, an enhanced focus, and much more flexibility as it relates to transforming its product portfolio. The company's 4Q'14 results confirm Jim and Jack's bullish thesis, as Halyard managed to grow EBITDA by 17% despite a mere 3% growth in sales.
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