RTI Surgical (NSDQ:RTIX) shares dipped today on first-quarter results that fell short of the consensus forecast.
The Deerfield, Ill.-based company posted losses of -$17.9 million, or -24¢ per share, on sales of $73.7 million for the three months ended March 31, 2020, for a 91% bottom-line slide on sales growth of 5.3%.
Adjusted to exclude one-time items, losses per share were also -24¢, 23¢ behind Wall Street, where analysts were looking for sales of $75.3 million.
“I am very proud of the actions taken by our entire organization over the last several months as we have navigated the COVID-19 pandemic while at the same time managing through the pending sale of the OEM business and a number of other headwinds,” RTI Surgical president & CEO Camille Farhat said in a news release. “The integrity, dedication, and talent of our people have enabled us to come out on the other side of this unique period in time ready to take advantage of the opportunities that exist in the spine market for high-value surgical solutions.
“We view the recent disruption as transitory, and despite the uncertainty associated with COVID-19, we remain very confident in the long-term prospects of the spine business. We are targeting double-digit long-term revenue growth with gross margins of 75% by executing on our strategy of build, innovate, and acquire. We are very excited about this next phase of RTI’s transformation.”
RTI said it will not offer 2020 financial guidance as a result of the uncertainties brought on by the COVID-19 pandemic. Some losses could be offset by the potential $490 million sale of its original equipment manufacturing (OEM) business, which will be voted on in a special meeting of stockholders on July 15.
RTIX shares were down -2.8% at $3.09 per share at market close today.