The Gory Details on Orthofix International's Double Miss
Orthofix International (NAS: OFIX) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Orthofix International missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Orthofix International reported revenue of $100.3 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $111.0 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $116.0 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 $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.66 per share. Non-GAAP EPS of $0.23 for Q1 were 67% lower than the prior-year quarter's $0.69 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.11 for Q1 were 83% lower than the prior-year quarter's $0.63 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.4%, 370 basis points worse than the prior-year quarter. Operating margin was 4.0%, much worse than the prior-year quarter. Net margin was 2.1%, 830 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $119.1 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $470.2 million. The average EPS estimate is $2.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members out of 126 rating the stock outperform, and eight members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Orthofix International 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 Orthofix International is outperform, with an average price target of $46.29.
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The article The Gory Details on Orthofix International's Double Miss originally appeared on Fool.com.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. The Motley Fool has no position in any of the stocks mentioned. 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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