Orthofix (Nasdaq:OFIX) this week posted third-quarter results that beat the overall consensus on Wall Street.
The Lewisville, Texas-based orthopedic company reported a net loss of $10.7 million, or -53¢ per share, on sales of $114 million for the three months ended Sept. 30 for a sales gain of 1.39% compared with Q3 2021.
Adjusted to exclude one-time items, earnings per share were 13¢, 1¢ ahead of The Street, where analysts were looking for sales of $113 million.
“New product innovation and commercial channel execution delivered a strong performance during the third quarter,” Orthofix President and CEO Jon Serbousek said in a news release. “Global Orthopedics, Biologics, and Bone Growth Therapies drove topline growth as solid portfolio-wide sales were bolstered by exciting market adoption trends from a number of recently launched products such as AccelStim Bone Healing Therapy and Virtuos Lyograft.”
“We are bullish about the future of Orthofix, even more so following the recent agreement to merge with SeaSpine,” Serbousek continued. “The combination of these two businesses will form an extremely well-positioned spine and orthopedics company with a unique profile of scale, growth, and profitability. It will be supported by a strong balance sheet capable of self-funding initiatives to deliver innovative solutions to improve patient outcomes on a global scale.”
In October, Orthofix announced an all-stock merger with SeaSpine to create a global spine and orthopedic company. Orthofix and SeaSpine said the transaction is well-financed. They project $125 million of liquidity at closing, growing into an existing $300 million credit facility over time.
Orthofix raised the bottom of its guidance for the year. For fiscal 2022, Orthofix anticipates net sales to be in the range of $457 million to $463 million. It previously expected net sales in the range of $455 million to $465 million.
Shares of OFIX were down 3.06% to $14.87 apiece at market open. MassDevice‘s MedTech 100 Index – which includes stocks of the world’s largest medical device companies – was down more than 2%.