The Lewisville, Texas-based company posted profits of $925,000, or 5¢ per share, on sales of $111.6 million for the three months ended June 30, seeing profits shrink 97.6% while sales grew 2.4% compared with the same period last year.
Adjusted to exclude one-time items, earnings per share were 42¢, ahead of the 36¢ consensus on The Street.
“During the second quarter, we made excellent progress on our operating and margin improvement goals despite the impact of unexpected currency headwinds and order timing on topline growth. Adjusted EBITDA performance in the period demonstrated our progress in driving efficiency to reduce operating expenses and achieve our stated goal of increasing Adjusted EBITDA margin in our organic business by at least 100 basis points this year and in each of the next two years. Operationally, we completed the acquisition and integration of Spinal Kinetics, realigned our business unit structure to help further accelerate long-term growth, positioned the company for the move of our corporate domicile from Curaçao to Delaware, that was completed July 31st, and significantly reduced inventories (excluding Spinal Kinetics) over prior year. We anticipate that these accomplishments will benefit Orthofix for many years to come,” prez & CEO Brad Mason said in a press release.
The company adjusted its outlook for the remaining year, expecting too see sales of between $450 million and $456 million, down from between $458 million and $464 million, with adjusted EPS from continuing operations of between $1.66 and $1.72, up from earlier guidance of between $1.58 and $1.68.
Shares in Orthofix fell 14.9% on Tuesday after the earnings were announced, closing at $51.99 after opening at $61.11. Shares today have risen nearly 1%, at $54.53 as of 3:41 p.m. EDT.
Last month, Orthofix announced it is changing its official name to Orthofix Medical after shifting the jurisdiction of the company from Curaçao to the state of Delaware, according to a recently posted SEC filing.