The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Exactech met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly, and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Exactech reported revenue of $53.1 million. The two analysts polled by S&P Capital IQ anticipated revenue of $53.7 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $51.8 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 $0.18. The three earnings estimates compiled by S&P Capital IQ averaged $0.25 per share on the same basis. GAAP EPS of $0.14 for Q4 were 33% lower than the prior-year quarter's $0.21 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 68.5%, 30 basis points worse than the prior-year quarter. Operating margin was 7.3%, 350 basis points worse than the prior-year quarter. Net margin was 3.4%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $56 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $218.8 million. The average EPS estimate is $0.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 167 members rating the stock outperform and six members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Exactech a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Exactech is outperform, with an average price target of $22.50.
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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.