The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Orthofix International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share increased. GAAP earnings per share increased significantly.
Margins increased across the board.
Orthofix International chalked up revenue of $112.0 million. The four analysts polled by S&P Capital IQ looked for a top line of $112.1 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $151.5 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 $0.81. The six earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. Non-GAAP EPS of $0.81 for Q4 were 1.3% higher than the prior-year quarter's $0.80 per share. GAAP EPS of $1.04 for Q4 were 58% higher than the prior-year quarter's $0.66 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 83.5%, 670 basis points better than the prior-year quarter. Operating margin was 22.1%, 440 basis points better than the prior-year quarter. Net margin was 18.3%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $115.0 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $476.2 million. The average EPS estimate is $3.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 117 members out of 125 rating the stock outperform, and eight members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Orthofix International 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 Orthofix International is outperform, with an average price target of $49.08.
Is Orthofix International the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Orthofix International to My Watchlist.