Orthofix International (NSDQ:OFIX) shares took a pounding on Wall Street last week, after the company reported dissapointing Q1 earnings results.
Shares of the Lewisville, Texas-based orthopedics company ended last week down some 17% on The Street after it reported net income of $2.1 million, or 11¢ per diluted share, on sales of $100.2 million, down 88% compared with a $12 million, or 63¢ per diluted share profit, on sales of $116 million.
The company also reported a nearly $3 million hit to its bottom line to adjust for discontinued operations.
“First quarter sales and earnings results were disappointing," Orthofix CEO Brad Mason said in prepared remarks. "The good news is that the primary issues that led to these results are identifiable, within our control, and fixable. We are developing a strategy with specific initiatives that will both improve our internal competencies and drive growth."
Sales in the company’s orthopedics business were down 17% from the previous year to $33.9 million, which the company said was the result of the loss of a large contract in Brazil, combined with continued trouble with the country’s regulatory environment.
Orthofix’s total spine business was also down some 12% during the quarter to $66.3 million, compared to $75 million the unit posted last year.
Company officials said it plans to update annual guidance following its 2nd quarter earnings release.