RTI Surgical Earnings: Here’s Why Shares are Down Now

RTI Surgical, Inc. (NASDAQ:RTIX) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.21%.

RTI Surgical, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.00 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 6.42% to $42.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RTI Surgical, Inc. reported adjusted EPS of $0 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $42.34 million.

Quoting Management: “While second quarter revenues were in line with our expectations, net income fell short,” said Brian K. Hutchison, president and chief executive officer of RTI. “The shortfall in net income for the period was due to the $3 million BTS litigation settlement charge, the $1.5 million expense related to the acquisition of Pioneer, as well as lower gross margins primarily related to the mix of implants distributed and the continued investment in the business to launch our new surgical specialties distribution force.”

Key Stats (on next page)…

Revenue increased 4.65% from $40.42 million in the previous quarter. EPS decreased to $0.00 in the quarter versus EPS of $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate has moved down from a profit of $0.18 to a profit of $0.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)