OrthoPediatrics (NSDQ:KIDS) posted fourth-quarter results that missed the consensus forecast on Wall Street.
The Warsaw, Ind.-based company reported losses of -$14 million, or -73¢ per share, on sales of $18.9 million for the three months ended Dec. 31, 2020, for a sales loss of -0.15% compared with Q4 2019.
Earnings per share were -73¢ per share, 46¢ behind The Street where analysts were looking for sales of $20.5 million and earnings of -27¢ per diluted share.
“Despite COVID-19, in 2020 we continued the systematic execution of our growth initiatives both domestically and internationally. Elective surgery volumes declined globally but staged a gradual recovery throughout the year. Second-quarter sales declined 25% but then began to recover with third-quarter sales growth of 7% and a 0.1% fourth-quarter sales decline due to the $2.7 million reduction which impacted fourth-quarter revenue growth by 14%,” CEO Mark Throdahl said in a news release.
“During the fourth quarter, our domestic business grew 26% and international agencies grew 51%, supporting the beginning of an international sales turnaround. We are optimistic about the outlook in 2021, particularly with the resumption of strong international growth. As we look ahead, we will continue to execute on our growth plans to support full-year 2021 revenue guidance of 31-38%. We believe we will see strong contributions from new domestic Orthex users, the continued acceleration of conversions, and the Orthex European launch in the second quarter of 2021. Furthermore, Apifix will complete its 200-case registry by late 2021, and the deployment of $18 million of consigned sets in 2019 and 2020 will positively impact domestic and international sales agency markets.”
OrthoPediatrics said it expects “very significant growth” over full-year 2020 with sales reaching $93-98 million to represent 31%-38% growth.
Shares in KIDS were at a standstill in pre-market trading.