Bio-Reference Laboratories Beats on Both Top and Bottom Lines

Bio-Reference Laboratories (NAS: BRLI) reported earnings on June 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), Bio-Reference Laboratories beat slightly on revenues and beat expectations on earnings per share.

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


Gross margins contracted, operating margins expanded, net margins were steady.

Revenue details
Bio-Reference Laboratories booked revenue of $163.4 million. The six analysts polled by S&P Capital IQ anticipated revenue of $161.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $137.7 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 $0.33. The six earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.33 for Q2 were 18% higher than the prior-year quarter's $0.28 per share.

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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 48.6%, 110 basis points worse than the prior-year quarter. Operating margin was 10.3%, 60 basis points better than the prior-year quarter. Net margin was 5.7%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $173.2 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $660.5 million. The average EPS estimate is $1.45.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 299 members out of 316 rating the stock outperform, and 17 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Bio-Reference Laboratories a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bio-Reference Laboratories is outperform, with an average price target of $25.80.

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At the time this article 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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Bio-Reference Laboratories. 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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