Shares in RTI Surgical (NSDQ:RTIX) have fallen today after the medical device maker posted 2nd quarter earnings which met expectations on Wall Street, but provided lowered guidance for the rest of its fiscal year.
The Alachua, Fla.-based company posted losses of $2.6 million, or 4¢ per share, on sales of $72.1 million for the 3 months ended June 30, seeing losses on the bottom-line shrink 17.4% while sales grew 6.7% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 2¢, right in line with the 2¢ consensus on Wall Street, where analysts were expecting to see revenue of $69.9 million for the quarter.
“We are making tangible progress toward our plan to transform RTI and return it to a path of solid, predictable and sustainable growth. While we are still in the early phase of this effort and there is more work to do, we are beginning to accomplish what we set out to achieve. Our commercial business continues to stabilize, our direct business delivered another quarter of strong performance and our Spine business continues to grow at above-market rates. We are encouraged by our strong 2nd quarter results and remain laser-focused on implementing our strategic initiatives and generating value for our employees, customers and shareholders,” CEO Camille Farhat said in a press release.
RTI Surgical updated its guidance for the rest of the year, taking into account its $60 million divestiture of its cardiothoracic business to A&E Medical. The company lowered its sales expectation from between $274 million and $285 million to between $274 million and $280 million, with earnings per share expectations dropping from between 5¢ and 10¢ to between 4¢ and 8¢.
“Longer-term, our focus will continue to be to: 1) simplify our business to manage costs, specifically in tissue acquisition and processing, 2) deepen our investments in our people with a focus on R&D to accelerate growth and innovation, and 3) ensure a culture of disciplined execution to achieve sustainable profitability. The sale of our cardiothoracic closure business during the quarter was an important first step toward our effort of enhancing RTI’s platform for operational excellence. We are committed to further streamlining our business and evaluating strategic growth opportunities so that we can devote resources to the areas that align best with our long-term growth aspiration. With our talented team, dedication to our customers and innovative products, I am optimistic that RTI is on the right path to success,” CEO Farhat said in a prepared statement.
Shares have fallen 2.4% in trading so far today, at $5.37 as of 9:52 a.m. EDT.
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