Orthofix Announces Preliminary Second Quarter Results
BY JOHN MCCORMICK, JULY 26, 2004
Last week Orthofix announced that second quarter sales are expected to be approximately $70.8 million which are less than consensus analyst expectations of $73.0 million to $73.8 million. Earnings per share are expected to approximate between $0.49 and $0.51 per diluted share, versus prior consensus analyst expectations of $0.59 to $0.62 per share.
The Company attributed the sales and earnings shortfalls versus analyst targets to continued lack of reimbursement effecting planned increases in the Orthotrac and EZ Brace brace products. Growth in spinal stimulators in the second quarter was not sufficient to offset these issues. Pricing, product mix and currency put pressure on gross margins during the quarter.
Noting that Orthofix sets aggressive goals for itself, CEO Charlie Federico said that the underlying fundamentals remain solid. Other segments of the business continue to outperform, such as the newly acquired BREG, which grew at 10% for the second quarter and 12% year-to-date which exceeds the growth rate in the bracing industry.
For the full year, Orthofix is now publicly forecasting earnings per share in a range of $2.20 to $2.30, with revenue of $285 million to $289 million.
