The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Orthofix International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins improved, net margins grew.
Orthofix International tallied revenue of $151.5 million. The six analysts polled by S&P Capital IQ predicted sales of $151.0 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $143.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.80. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.73 per share on the same basis. GAAP EPS of $0.66 for Q4 were 47% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.8%, 50 basis points worse than the prior-year quarter. Operating margin was 18.1%, 230 basis points better than the prior-year quarter. Net margin was 8.2%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $144.9 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $604.8 million. The average EPS estimate is $3.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 122 members out of 130 rating the stock outperform, and eight members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Orthofix International 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 Orthofix International is buy, with an average price target of $44.42.
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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.