NASDAQ$OFIX

Orthofix Medical Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Orthofix's second quarter results reflected double-digit growth in global orthopedics and progress in innovation initiatives, offset by macro headwinds and currency fluctuations.

Orthofix reported Q2 2022 net sales of $118.1 million, a decrease of 3% on a reported basis but flat on a constant currency basis. GAAP EPS was $0.12, and adjusted EPS was $0.08. The company is maintaining full-year revenue guidance of $455 to $465 million.

  • Net sales decreased by 3% on a reported basis but were flat on a constant currency basis compared to the prior year.
  • Global Orthopedics net sales grew by 11% on a constant currency basis, driven by new products and channel investments.
  • GAAP EPS was $0.12, and adjusted EPS was $0.08.
  • The company executed a partnership with CGBio to commercialize Novosis™ rhBMP-2 growth factor in the U.S. and Canada.

Headline financials

Total Revenue

$118M

Previous: $121M-2.7%
EPS (adj)

$0.08

Previous: $0.32-75.0%
Gross Margin

73.2%

No prior period
Capital Expenditures

-$11M

Previous: -$9.04M-22.1%
Free Cash Flow

-$8.54M

Previous: -$6.62M-29.1%
Net Income

$2.49M

Previous: $2.42M+2.9%
Operating Income

$6.64M

Previous: $4.27M+55.6%
Gross Profit

$86.5M

Previous: $94M-8.0%
Cash & Equivalents

$59.5M

Previous: $80M-25.6%
Total Assets

$462M

Previous: $502M-8.0%
Stock-Based Comp

$4.46M

Previous: $3.91M+14.2%

Revenue & EPS history

Orthofix · Revenue · Quarterly

$118M

Q2 2022-2.7%vs Q2 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Orthofix · $103M total across 3 segments · Q2 2022

  • Bone Growth Therapies
    $47.8M-3.9%
  • Spinal Implants & Biologics
    $28.2M-6.2%
  • Global Limb Reconstruction
    $27.3M+2.0%

Forward guidance

The Company expects full year net sales to be in the range of $455 to $465 million, representing flat to 2% growth on a constant currency basis. Full year adjusted EBITDA is expected to be $53 to $57 million, and adjusted EPS is expected to be $0.45 to $0.55.

Tailwinds

  • Full year net sales growth rates – constant currency 0% - 2%
  • Full year adjusted EBITDA $53 - $57
  • Full year adjusted EBITDA as percentage of net sales 12%
  • Full year adjusted EPS $0.45-$0.55

Headwinds

  • Full year net sales $455 - $465
  • Full year net sales growth rates – reported (2%) - 0%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.9%

Avg return

Earnings day

-2.6%

Avg return

5 days after

-3.4%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+20.3%

Q2 2014

Best reaction

-18.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%-2.8%-13.8%
Q4 2025-7.0%-0.4%-13.2%
Q3 2025-7.4%-6.8%-1.0%
Q1 2025-10.8%-10.6%-20.9%
Q4 2024-3.5%-4.2%-11.0%
Q3 2024+5.5%+4.6%+1.2%
Q2 2024+13.8%+10.8%+16.7%
Q1 2024+10.7%+8.8%+0.6%
Q4 2023+8.1%+7.1%+8.6%
Q3 2023-12.5%-20.2%-3.2%
Q2 2023+9.9%+7.6%+1.3%
Q1 2023+1.0%-2.3%+6.7%
Q4 2022-7.7%-13.2%-15.5%
Q3 2022-2.2%+4.1%+30.5%
Q2 2022-6.6%-8.8%-20.9%
Q1 2022-10.5%-14.3%-11.6%
Q4 2021+4.0%+3.5%+0.4%
Q3 2021-5.9%-10.9%-18.6%
Q2 2021+8.9%+4.1%+12.4%
Q1 2021+0.5%-2.0%-8.7%
Q4 2020+0.6%-0.5%-7.3%
Q3 2020+5.2%+13.6%+10.8%
Q2 2020+4.5%+4.6%-13.4%
Q1 2020-1.9%-6.9%+3.9%
Q4 2019-18.5%-21.5%-40.9%
Q3 2019-16.8%-17.0%-9.6%
Q2 2019+0.1%+2.6%-5.5%
Q1 2019-2.6%-0.3%-10.9%
Q4 2018-8.5%-10.0%-14.8%
Q3 2018+7.4%+8.8%+4.1%
Q2 2018-15.1%-11.9%-12.1%
Q1 2018-13.4%-14.6%-10.5%
Q4 2017+6.4%+4.6%+8.4%
Q3 2017+8.8%+5.1%+9.6%
Q2 2017+9.9%+6.8%+12.3%
Q1 2017+1.4%+3.8%+8.2%
Q4 2016-6.1%-4.8%+2.6%
Q3 2016-3.8%-6.8%-1.5%
Q2 2016-10.4%-10.5%-4.8%
Q1 2016+0.4%
Q4 2015+2.8%
Q3 2015+14.4%
Q2 2015+13.8%
Q1 2015+0.4%
Q4 2014-10.8%
Q3 2014+20.3%
Q2 2014+20.3%
Q1 2014+4.2%
Q4 2013+14.1%
Q3 2013+1.1%
Q2 2013-0.8%
Q1 2013-16.4%
Q4 2012-4.9%
Q3 2012-2.8%
Q2 2012+4.5%
Q1 2011-0.7%
Q1 2012+1.0%
Q1 2010-4.8%
Q4 2011-4.8%
Q4 2009-4.8%
Q3 2010-7.4%
Q3 2011-7.4%
Q4 2010-9.5%
Q2 2010-9.5%
Q2 2011-9.5%

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