Financial

RTI Biologics Beats on Both Top and Bottom Lines

By Seth Jayson

updated 8/2/2012 5:55:22 AM ET

RTI Biologics reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), RTI Biologics beat expectations on revenues and beat expectations onearnings per share.

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

Gross margins improved, operating margins increased, net margins contracted.

Revenue details
RTI Biologics reported revenue of $45.2 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $44.2 million on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter’s $43.5 million.

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 $0.05. The seven earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS of $0.02 for Q2 were 50% lower than the prior-year quarter’s $0.04 per share.

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

Margin details
For the quarter, gross marginwas 47.9%, 260 basis points better than the prior-year quarter. Operating margin was 8.9%, 190 basis points better than the prior-year quarter. Net margin was 2.9%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter’s average estimate for revenue is $43.8 million. On the bottom line, the average EPS estimate is $0.04.

Next year’s average estimate for revenue is $177.9 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 211 members out of 221 rating the stock outperform, and 10 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give RTI Biologics a green thumbs-up, and one gives 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 $4.78.

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Source: http://www.msnbc.msn.com/id/48470555/ns/business-motley_fool/#.UB_0k8ie4b8

Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

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