Tornier Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Tornier (NAS: TRNX) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q1), Tornier met expectations on revenues and missed expectations on earnings per share.

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


Margins increased across the board.

Revenue details
Tornier booked revenue of $74.5 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $75.0 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $69.4 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 $0.00. The five earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS contracted to zero from the prior-year quarter's -$0.68.

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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 71.6%, 50 basis points better than the prior-year quarter. Operating margin was 1.7%, 60 basis points better than the prior-year quarter. Net margin was -0.2%, 3,430 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $69.5 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $281.5 million. The average EPS estimate is $0.01.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 11 members out of 14 rating the stock outperform, and three members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Tornier a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tornier is outperform, with an average price target of $26.88.

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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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