The 10-second takeaway
For the quarter ended March 31 (Q1), RTI Biologics beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share improved.
Margins improved across the board.
RTI Biologics reported revenue of $43.7 million. The six analysts polled by S&P Capital IQ looked for revenue of $41.9 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $40.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
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 Q1 were 100% higher than the prior-year quarter's $0.02 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 46.0%, 90 basis points better than the prior-year quarter. Operating margin was 6.6%, 170 basis points better than the prior-year quarter. Net margin was 4.6%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $44.2 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $175.6 million. The average EPS estimate is $0.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 206 members out of 217 rating the stock outperform, and 11 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give RTI Biologics 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 RTI Biologics is outperform, with an average price target of $5.13.
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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 stock holdings. He is the 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 don't 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.