The Lewisville, Texas-based orthopedic device company posted profits of $25.7 million, or $1.32 per share, on sales of $104.8 million for the three months ended March 31, 2020, multiplying its bottom line by nearly 30 times even after a sales decline of 3.9%.
Adjusted to exclude one-time items, earnings per share were 9¢, 3¢ ahead of Wall Street, where analysts were looking for sales of $105.9 million.
“The strong performance and momentum we generated during the first 10 weeks of the quarter as a result of our execution on a number of strategic initiatives positioned us to exceed our expectations for the quarter,” Orthofix president and CEO Jon Serbousek said in a news release. “However, the significant negative impact from the delay in elective procedures as a result of COVID-19 in March offset this upward trajectory. We have proactively responded to ensure that our balance sheet and capital liquidity is sufficient to maintain our commercial infrastructure and innovation initiatives and enable us to react immediately to a recovery in demand and the needs of our customers.
“We cannot predict the duration or the full scale of the disruption caused by the pandemic, but we continue to believe the long-term fundamental prospects for Orthofix are strong and we will continue to invest in the growth of our business.”
Orthofix said it is not offering second-quarter or 2020 financial guidance amid the uncertainties brought on by the COVID-19 pandemic.
OFIX shares were up 4% at $37.60 per share in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.7%.