The 10-second takeaway
For the quarter ended March 31 (Q1), Orthofix International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased.
Margins improved across the board.
Orthofix International logged revenue of $143.1 million. The four analysts polled by S&P Capital IQ predicted a top line of $143.4 million on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $139.2 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 $0.69. The five earnings estimates compiled by S&P Capital IQ anticipated $0.66 per share. GAAP EPS were $0.63 for Q1 against -$2.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.0%, 100 basis points better than the prior-year quarter. Operating margin was 15.4%, 110 basis points better than the prior-year quarter. Net margin was 8.4%, 3,410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $148.6 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $602.9 million. The average EPS estimate is $3.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 120 members out of 128 rating the stock outperform, and eight members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 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 outperform, with an average price target of $49.17.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Orthofix International performing well enough for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.
- Add Orthofix International to My Watchlist.
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.