Orthofix stock holds rating after Q4 results beat

Published 31/03/2025, 11:56
Orthofix stock holds rating after Q4 results beat

Monday saw Citizens JMP analysts maintain a Market Perform rating for Orthofix International (NASDAQ:OFIX) following the company’s fourth-quarter earnings release. Orthofix reported a top-line revenue of $215.7 million, surpassing the consensus estimate of $212.4 million. The company’s EBITDA for the quarter also exceeded expectations, coming in at $23.9 million against a forecasted $22.5 million. The company, currently valued at $626.7 million, has maintained steady revenue growth of 7.08% over the last twelve months, with an impressive gross margin of 69.8%. According to InvestingPro analysis, the stock appears to be trading below its Fair Value.

Despite these positive results, Orthofix provided guidance for 2025 that was slightly below analyst expectations. However, management has either reiterated or increased its long-range plan (LRP) targets that were initially set during the third-quarter earnings call of 2024.

During the quarter, Orthofix announced several product updates. The company is phasing out its M6-C disc products, which contributed approximately $23 million in revenue in 2024 but were seen as a drag on growth. In response to this change, management has raised the company’s long-term revenue compound annual growth rate (CAGR) target from 6-7% to 6.5-7.5% through 2027. Additionally, Orthofix is preparing to launch new products in both its spine and orthopedics portfolios later in the year and has recently achieved 510k approval and a CE mark for the TrueLok Elevate System.

Furthermore, Orthofix has filed a shelf registration statement. The management has indicated that the company’s new debt facility, which was announced in the third quarter of 2024, provides sufficient financing for its current operational needs, suggesting that Orthofix is in a solid financial position for the foreseeable future. This is supported by the company’s healthy current ratio of 2.57. For detailed valuation metrics and comprehensive analysis of Orthofix’s financial health, visit InvestingPro, where you’ll find expert insights and in-depth research reports covering over 1,400 US stocks.

In other recent news, Orthofix Medical (TASE:BLWV) Inc. reported fourth-quarter earnings with revenue reaching $215.7 million, surpassing the consensus estimate of $212.7 million. This represents a 7.6% increase year-over-year, driven primarily by strong performance in its Global Orthopedics segment. Despite this, Orthofix has adjusted its revenue guidance for fiscal year 2025 to between $818 million and $826 million, below the Street’s projection of $847 million, due to the discontinuation of certain product lines. BTIG maintained a Neutral rating on the company, noting potential challenges in first-quarter sales for FY25.

Additionally, Canaccord Genuity initiated coverage on Orthofix with a Buy rating and a price target of $24.00, citing the successful integration of SeaSpine and a promising strategic focus on profitable growth. The firm highlighted Orthofix’s comprehensive product portfolio and its potential to gain commercial traction. In other developments, Orthofix received FDA clearance for its TrueLok™ Elevate Transverse Bone Transport System, a limb preservation solution now available in select markets.

Moreover, Orthofix expanded its Board of Directors by appointing finance expert Vickie Capps, increasing the board’s size to ten members. Capps brings extensive experience from previous roles, including CFO of DJO Global, Inc., and board positions at several healthcare companies. Her expertise is expected to contribute positively to Orthofix’s strategic development and shareholder value.

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