The Lewisville, Texas-based company posted profits of $3.9 million, or 21¢ per share, on sales of $108.9 million for the 3 months ended June 30, seeing a 151.8% swing from the red on the bottom-line while sales grew 4.7% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 42¢, coming in 5¢ above the 37¢ consensus on Wall Street, where analysts were expecting to see sales of $102.9 million for the quarter.
“The key take-away from the second quarter is the strong sales performance of our Biologics and Spine Fixation businesses. Both have averaged mid-single digit year-over-year growth over the last three quarters. We believe these growth rates are sustainable in both businesses due to the renewed engagement of our sales partners, the addition of new distributors in underserved markets and our flow of new products to the field. The BioStim and Extremity Fixation businesses also performed better than we expected in the second quarter with BioStim delivering another solid top line performance and, when excluding planned subsidiary restructuring and the loss of sales due to the discontinuation of a non-core business last year, Extremity Fixation delivered good constant currency growth. Our bottom line performance was in line with our expectations for the period. Our primary focus this year is investing in the areas necessary to support a sustainable increase to our top line growth rate, rather than margin expansion. As we move into next year, without sacrificing our top line growth, we expect to return to adjusted EBITDA margin expansion as a result of a number of opportunities we see across the P&L,” prez & CEO Brad Mason said in a press release.
Orthofix lifted its guidance for the rest of the fiscal year, lifting its revenue expectations from between $411 million and $415 million to between $422 million and $425 million. Earnings per share guidance was lifted from previous estimates of between $1.48 and $1.58 to between $1.54 and $1.60.
Shares in Orthofix haven’t changed in after-hours trading after closing up 2% at $44.85 today.