Orthofix reported profits of $4.1 million, or 19¢ per share, on sales of $101 million for the 3 months ended June 30. That puts sales over $3 million up on analyst’s expectations.
That amounts to a 24.8% gain on neutral sales growth compared with the same quarter last year. Adjusted to exclude 1-time items, earnings per share were 36¢, nearly 3 times higher than Wall Street Analysts’ expectations of 13¢.
The good news sent shares up, up 11.8% to $38.92 as of 5:25 p.m. EDT.
The higher-than-expected earnings and income inspired the company to adjust its guidance, raising its net sales outlook $5 million from $385-$390 million to $390-$395 million. Guidance for earnings before interest, taxes, depreciation and amortization was also lifted by $2 million.
“I am pleased with our second quarter results and the improving outlook for our business reflected in our higher guidance. While I believe this quarter demonstrates that we have put the right strategies in place and are making good progress, we need to continue to execute against our plan to drive similar or better results going forward,” CEO Brad Mason said in a press release.
In June, Orthofix inked an agreement to potentially pay at least $65 million for eNeura and its home migraine treatment device, even as it restated 3 years of financial results in a bid to address past accounting discrepancies.