The 10-second takeaway
For the quarter ended March 31 (Q1), Orthofix International missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Orthofix International reported revenue of $100.3 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $111.0 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $116.0 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 $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.66 per share. Non-GAAP EPS of $0.23 for Q1 were 67% lower than the prior-year quarter's $0.69 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.11 for Q1 were 83% lower than the prior-year quarter's $0.63 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.4%, 370 basis points worse than the prior-year quarter. Operating margin was 4.0%, much worse than the prior-year quarter. Net margin was 2.1%, 830 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $119.1 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $470.2 million. The average EPS estimate is $2.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members out of 126 rating the stock outperform, and eight members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 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 $46.29.
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