Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. demonstrated robust performance in its global spine segment, achieving significant market share capture with notable revenue growth in lateral (24%), MIS lumbar (18%), and both posterior cervical and anterior lumbar (17%). The company's global orthopedics segment exhibited strong results as well, reporting 6% constant currency growth, supported by an 8% revenue increase in U.S. spinal fixation. Additionally, the spinal implants, biologics, and enabling technology line generated $110.9 million in revenue, surpassing expectations and indicating a solid top-line strength of 8% in the U.S. market.

Orthofix Medical Inc. reported GAAP selling, general, and administrative (SG&A) expenses at 72.0% of revenue, exceeding expectations of 66.7%, which signals potential inefficiencies that could impact profitability. Despite adjusted EBITDA of $25.1 million surpassing the expected $21.0 million, the company's revenue forecast for the year is projected at approximately $820 million, which, when excluding certain impacts, falls within management's lower pro forma guidance range of $810 million to $814 million. These financial metrics underscore challenges in managing costs relative to revenue growth and suggest a cautious outlook on the company's ability to meet market expectations moving forward.