Orthofix to restate past financials on revenue snafu | Wall Street Beat

MassDevice.com Wall Street Beat

Orthofix (NSDQ:OFIX) said an audit of its books is prompting it to restate its financial results for 2011, 2012 and Q1 2013 after discovering revenues that were improperly recognized.

The ongoing review by the Orthofix board of directors’ audit committee means the Lewisville, Texas-based orthopedics company will be late in filing its results for the 2nd quarter, according to regulatory filings.

Orthofix said that "certain revenues recognized during 2011 and 2012, upon further evaluation, should not have been recognized or should not have been recognized during the periods in which they were recognized," according to the filings.

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"Management continues to assess the company’s disclosure controls and procedures and internal control over financial reporting for current and prior periods. Management does not expect to reach a final conclusion on the effectiveness of the company’s internal control over financial reporting and disclosure controls and procedures until completion of the restatement process, but expects to report in future or amended filings the existence of 1 or more material weaknesses in the company’s internal control over financial reporting relating to the restatement," according to the filings.

Orthofix said it doesn’t know when the audit will be finished or when it expects to release its new financials.

The news sent OFIX shares down 3.2% to $23.09 each as of about 12:45 p.m. today.

 Some hedge funds shed Abiomed, others double down
Hedge fund activity in shares of Abiomed (NSDQ:ABMD)
is down 33%, but some of the remaining hedge investors in the medical device company are increasing their positions in the stock.
Four funds dropped ABMD last quarter, including Broadfin Capital and its $5.4 million stake and Renaissance Technologies’ $3.1 million share. Eight other funds are still in the stock, including Palo Alto Investors ($43.9 million), CR Intrinsic Investors ($14.9 million), Millennium Management, Citadel Investment Group and Adage Capital Management.
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Mazor Robotics (NSDQ:MZOR) moved to the NASDAQ stock exchange under the "MZOR" symbol, backed by BNY Mellon as depositary bank.
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InfuSystem Holdings (NSDQ:INFU) said it’s abandoned a possible sale of the company and named a new chairman, Ryan Morris, who will succeed Wayne Yetter.
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 Analysts’ ups and downs

  • Cardinal Health (NYSE:CAH): UBS Investment Research reiterates "buy" rating, raises price target from $53 to $58.
  • Cardiovascular Systems (NSDQ:CSII): Leerink Swann reiterates "outperform" rating, raises price target to $25 from $20.
  • Cutera (NSDQ:CUTR): Piper Jaffray Cos. downgrades from “overweight” to “neutral” rating, lowers price target to $11 from $12; Sidoti downgrades from “buy” to “neutral” rating.
  • Cynosure (NSDQ:CYNO): Citigroup reiterates "buy" rating, raises price target from $36 to $41; Leerink Swann maintains “outperform” rating, ~$36 valuation
  • Dentsply International (NSDQ:XRAY): Northcoast Research downgrades from “buy” to “neutral” rating.
  • Endo Health Solutions (NSDQ:ENDP): UBS raises estimates, boosts price target to $43 from $41.
  • Fresenius (NYSE:FMS): Societe Generale downgrades from “buy” to “hold” rating.
  • GE (NYSE:GE): TheStreet reiterates “buy” rating.
  • Globus Medical (NYSE:GMED): Leerink Swann reiterates “outperform” rating, raises price target to $21 from $19.
  • Hanger (NYSE:HGR): CJS Securities downgrades from “outperform” to “market perform” rating, $35 price target.
  • Hologic (NSDQ:HOLX): Leerink Swann maintains “outperform” rating, lowers price target to $26 from $27.
  • Hospira (NYSE:HSP): Leerink Swann maintains “market perform” rating, raises price target from $32-$33 to $43
  • ICU Medical (NSDQ:ICUI): Raymond James downgrades from “outperform” to “market perform” rating.
  • ResMed (NYSE:RMD): Deutsche Bank upgrades from “hold” to “buy” rating, raises price target to 83¢ from 71¢.
  • RTI Surgical (NSDQ:RTIX): Canaccord Genuity downgrades from "buy" to "hold" rating, lowers price target from $5 to $3.50.
  • Siemens (NYSE:SI): Zacks downgrades from “neutral” to “underperform” rating, $101 price target.
  • Sirona Dental Systems (NSDQ:SIRO): Barrington Research upgrades from “market perform” to “outperform” rating, $82 price target.
  • SurModics (NSDQ:SRDX): Feltl & Co. upgrades from “buy” to “strong-buy” rating, $31.25 price target.
  • Teleflex (NYSE:TFX): Leerink Swann maintains “market perform” rating, $85 price target.
  • Thoratec (NSDQ:THOR): Northland Capital Partners upgrades from “market perform” to “outperform” rating, raises price target to $42 from $35.
  • Volcano (NSDQ:VOLC): Canaccord Genuity upgrades from “hold” to “buy” rating, raises price target from $21 to $26; Leerink Swann maintains “outperform” rating, $25 price target.
  • Wright Medical (NSDQ:WMGI): Leerink Swann maintains “outperform” rating, increases price target to $32 from $29.

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