RTI Biologics (Nasdaq: RTIX) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RTI Biologics beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank.

Gross margins increased, operating margins grew, and net margins dropped.

Revenue details
RTI Biologics tallied revenue of $42.9 million. The six analysts polled by S&P Capital IQ foresaw revenue of $41.2 million. Sales were 5.4% lower than the prior-year quarter's $45.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.04. The six earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. GAAP EPS of $0.04 for Q4 were 33% lower than the prior-year quarter's $0.06 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.2%, 170 basis points better than the prior-year quarter. Operating margin was 8.4%, 70 basis points better than the prior-year quarter. Net margin was 5.5%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $42.0 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $176.0 million. The average EPS estimate is $0.17.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 211 members out of 222 rating the stock outperform, and 11 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give RTI Biologics a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RTI Biologics is outperform, with an average price target of $4.85.

Over the decades, small-cap stocks like RTI Biologics have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.