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On Friday, JMP analysts maintained a Market Outperform rating with a $50.00 price target for OrthoPediatrics Corp. (NASDAQ:KIDS), reflecting a positive outlook on the company’s performance. According to InvestingPro data, the company has demonstrated robust growth with a 37.65% revenue increase over the last twelve months, maintaining an impressive gross margin of 72.58%. OrthoPediatrics achieved revenue figures that matched its preliminary announcements, demonstrating continued market share growth within its pediatric-orthopedic niche. The company reported a significant 52% year-over-year increase in U.S. sales, totaling $42.9 million, and a 5% rise in international sales despite operational changes in shipping during the quarter.
OrthoPediatrics has reiterated its guidance for 2025, with a minor adjustment in Gross Margin to account for a small change in the reporting of General & Administrative expenses and Cost of Goods Sold. The guidance anticipates revenue growth between 15%-18% and adjusted EBITDA ranging from $15 million to $17 million, a substantial increase from $8.5 million in 2024.
The company’s management expressed strong confidence in the recent earnings call, stating their belief that "the fundamentals of our business have never been stronger." This sentiment is backed by the company’s consistent progress toward its Long Range Plan (LRP), which includes the opening of Boston O&P clinics, scaling of OPSB, and achieving cash flow breakeven, which is expected in the fourth quarter of 2025.
OrthoPediatrics also streamlined its operations by closing its Israeli office to centralize ApiFix management and manufacturing in the United States. Additionally, the company faced challenges with slower set sales shipments to South America, particularly Brazil, due to rapid foreign exchange fluctuations. These strategic moves are seen as steps towards improving cash generation and operational efficiency, setting the stage for a robust year ahead according to JMP analysts. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 6.98 and operates with a moderate level of debt, supporting its operational restructuring efforts. Discover comprehensive analysis and Fair Value estimates in the exclusive Pro Research Report, available for 1,400+ US stocks.
In other recent news, OrthoPediatrics Corporation reported its fourth-quarter 2024 earnings, revealing a significant revenue increase, though it missed EPS expectations. The company posted a revenue of $52.7 million, exceeding the forecast of $50.72 million, marking a 40% year-over-year growth. However, the EPS was reported at -$0.69, falling short of the projected -$0.30. Looking ahead, OrthoPediatrics aims for a 15-18% revenue growth in 2025 and anticipates achieving its first positive free cash flow by the fourth quarter of 2025. Stifel analysts recently revised the company’s stock price target to $32, down from $40, while maintaining a Buy rating, reflecting a positive outlook despite the EPS miss. The company’s management highlighted strong U.S. revenue growth and product innovations expected to drive further market share gains in 2025. Additionally, the company plans to expand its Specialty Bracing franchise and introduce new products like the PNP Tibia and DF2 Fracture Brace. These developments indicate a strategic focus on growth and market expansion despite current financial challenges.
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