OraSure Technologies Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

OraSure Technologies (NAS: OSUR) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), OraSure Technologies beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased to zero.

Gross margins dropped, operating margins expanded, net margins increased.

Revenue details
OraSure Technologies logged revenue of $21.7 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $19.3 million. GAAP sales were 26% higher than the prior-year quarter's $18.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.08. The five earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share on the same basis. GAAP EPS contracted to zero from the prior-year quarter's -$0.03.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.6%, 200 basis points worse than the prior-year quarter. Operating margin was -1.2%, 380 basis points better than the prior-year quarter. Net margin was 0.5%, 590 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $23.1 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $81.4 million. The average EPS estimate is -$0.26.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 190 members out of 213 rating the stock outperform, and 23 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give OraSure Technologies a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OraSure Technologies is buy, with an average price target of $11.50.

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At the time thisarticle was published 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 ofMotley 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.

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