Hanger Orthopedic Group Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Hanger Orthopedic Group (NYS: HGR) reported earnings Wednesday. Here are the numbers you need to know.

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

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


Gross margins grew, operating margins dropped, and net margins improved.

Revenue details
Hanger Orthopedic Group tallied revenue of $218.1 million. The three analysts polled by S&P Capital IQ expected a top line of $212.3 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $200.4 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 $0.22. The four earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.22 for Q1 were 22% higher than the prior-year quarter's $0.18 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 32.3%, 60 basis points better than the prior-year quarter. Operating margin was 9.2%, 20 basis points worse than the prior-year quarter. Net margin was 3.5%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $249.9 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $975.7 million. The average EPS estimate is $1.76.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 104 members rating the stock outperform and six members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Hanger Orthopedic Group 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 Hanger Orthopedic Group is outperform, with an average price target of $26.10.

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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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