The Lewisville, Texas-based company reported losses of -$18.4 million, or -96¢ per share, on sales of $73.1 million for the three months ended June 30, for a sales loss of -36.8% compared with Q2 2019.
Adjusted to exclude one-time items, earnings per share were -59¢, 49¢ ahead of The Street, where analysts were looking for sales of $50.7 million.
“Despite the significant impact of COVID-19 in the second quarter, we continued to execute successfully against our strategic initiatives,” president and CEO Jon Serbousek said in a news release. In particular, with the regulatory clearances of the Firebird SI Fusion System and the JuniOrtho Plating System, we believe we are making progress in creating a high-velocity new product innovation program.”
“After reaching a low point in April, revenues rebounded sequentially in both May and June in large part due to the business continuity initiatives we put into place as well our emphasis on accelerating our commercial efforts. For example, even in spite of the lower elective procedure volumes during the quarter, Motion Preservation U.S. sales continued to outperform our expectations, with rapid adoption of the M6-C artificial cervical disc. Looking to the balance of the year, we are optimistic about the continued recovery in our business and markets and intend to continue to invest in our strategic initiatives aimed at driving growth in the business while maintaining the strength of our balance sheet to best position Orthofix for long-term success. However, we believe it is still difficult to accurately predict the ongoing disruption that will be caused by the pandemic.”
Orthofix said the COVID-19 pandemic is significantly affecting its business operations. Since the future trajectory of the pandemic is uncertain, the company is not providing a financial outlook for the Q3 or the full year.
Shares in OFIX were down -0.42% to $33.10 apiece at market open.