Orthofix Medical (Nasdaq: OFIX) shares rose today on second-quarter results that beat the revenue forecast on Wall Street.
Shares of OFIX ticked up 2.2% to $13.76 apiece in late-afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.7%.
The Lewisville, Texas-based orthopedic implant company reported losses of $36 million. That equals 95¢ per share on sales of $188.6 million for the quarter ended March 31, 2024.
Orthofix recorded a nearly $25 million bottom-line gain on a sales increase of 7.7%. Sales topped Wall Street estimates of $184.1 million.
“Orthofix executed well on a number of key priorities in the first quarter of the year and delivered notable growth in all of its U.S. businesses. We saw strength in many areas of our broadening portfolio, including outsized performance in U.S. Spine Fixation, U.S. Orthopedics, and the Bone Growth Therapies fracture market, with growth of 16%, 23%, and 17%, respectively,” said Massimo Calafiore, president and CEO of Orthofix. “I remain confident in the fundamentals of the company and believe we are poised to continue driving value through profitable growth, increased operating leverage, and portfolio synergies. I look forward to sustaining the first quarter’s momentum through the remainder of 2024 and taking further advantage of the many opportunities for market share gain that lie within all of our core segments.”
Orthofix expects net sales to range between $790 million and $795 million in 2024, marking growth between 6% and 7%. That represents a rise on the low end of the company’s previous projection of $785 million in sales. Orthofix also expects to be free cash flow positive by the fourth quarter of 2024.
BTIG analysts noted “continued conservatism” by the company’s new leadership but called the results “a solid start to the year.” They maintain a “Neutral” rating.
“We look for continued out-performance to become more constructive on shares,” they wrote.
