RTI Biologics Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

RTI Biologics (NAS: RTIX) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), RTI Biologics beat expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue increased and GAAP earnings per share improved.


Margins improved across the board.

Revenue details
RTI Biologics reported revenue of $43.7 million. The six analysts polled by S&P Capital IQ looked for revenue of $41.9 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $40.6 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
EPS came in at $0.04. The six earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. GAAP EPS of $0.04 for Q1 were 100% higher than the prior-year quarter's $0.02 per share.

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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 46.0%, 90 basis points better than the prior-year quarter. Operating margin was 6.6%, 170 basis points better than the prior-year quarter. Net margin was 4.6%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.2 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $175.6 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 206 members out of 217 rating the stock outperform, and 11 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give RTI Biologics 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 RTI Biologics is outperform, with an average price target of $5.13.

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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 stock holdings. He is the 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 don't 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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