Paradis Paul, director & president at Sezzle, sells $472k in shares
Investing.com - BTIG has lowered its price target on OrthoPediatrics Corp. (NASDAQ:KIDS) to $39.00 from $40.00 while maintaining a Buy rating following the company’s second-quarter 2025 results. The stock, currently trading at $20.19, sits near its 52-week low of $19.52, according to InvestingPro data.
OrthoPediatrics reported revenue of $61.1 million, representing 16% year-over-year growth, slightly below BTIG and consensus estimates of $61.5 million. The company’s Trauma & Deformity sales reached $41.7 million (up 10.3% year-over-year), Scoliosis sales were $18.5 million (up 35.4%), and Sports Medicine/Other sales fell to $0.9 million (down 32.9%).
Underperformance in Trauma & Deformity (4% below Street expectations) and Sports Medicine (36.3% below Street estimates) was offset by Scoliosis sales exceeding projections by approximately 11.6%. Gross margin and operating margin missed Street expectations by approximately 170 basis points and 720 basis points respectively, attributed to higher 7D and international set sales along with a one-time restructuring charge.
Despite the mixed quarterly results, OrthoPediatrics slightly raised its full-year 2025 guidance to $237-242 million (representing 16-18% year-over-year growth) from previous guidance of $236-242 million. The company maintained its adjusted EBITDA forecast of $15-17 million as its OPSB strategy gains momentum in the second half of 2025.
BTIG noted that OrthoPediatrics shares remain at a depressed valuation of approximately 1.5x next-twelve-months EV/Sales despite maintaining a solid high-teens growth rate. The firm cited new clinic ramps, new products in legacy markets, and improving profitability through scale with free cash flow generation expected by fourth-quarter 2025 as factors supporting its continued favorable view of the risk/reward profile. With a market cap of $500 million and strong analyst consensus (1.71 out of 5, where 1 is Strong Buy), the stock appears undervalued according to InvestingPro’s Fair Value model. Discover more insights and 5 additional ProTips about KIDS in the comprehensive Pro Research Report, available exclusively to subscribers.
In other recent news, OrthoPediatrics Corporation reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of -$0.11. This figure significantly exceeded the analysts’ forecast of -$0.29, marking a notable earnings beat. While the company’s revenue details were not disclosed, the positive earnings surprise indicates strong financial performance. Despite the earnings beat, the company’s stock experienced a slight decline. This mixed market reaction highlights the complexities investors face when interpreting earnings results. No updates on mergers or acquisitions were reported. Additionally, there were no recent analyst upgrades or downgrades mentioned in the available information. These developments reflect the latest updates concerning OrthoPediatrics Corporation.
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