The 10-second takeaway
For the quarter ended April 30 (Q2), Bio-Reference Laboratories met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins increased, net margins increased.
Bio-Reference Laboratories booked revenue of $176.5 million. The five analysts polled by S&P Capital IQ predicted revenue of $176.1 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $163.4 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 $0.41. The five earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.41 for Q2 were 24% higher than the prior-year quarter's $0.33 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 45.7%, 490 basis points worse than the prior-year quarter. Operating margin was 11.7%, 140 basis points better than the prior-year quarter. Net margin was 6.4%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $183.5 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $712.4 million. The average EPS estimate is $1.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 310 members out of 330 rating the stock outperform, and 20 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Bio-Reference Laboratories a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bio-Reference Laboratories is outperform, with an average price target of $32.50.
Is Bio-Reference Laboratories 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 Bio-Reference Laboratories 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. TMFDisclosureHere