Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. demonstrated positive performance in its financial metrics, with its U.S. spinal fixation segment achieving 8% revenue growth alongside a notable 10% increase in procedures during the quarter. The company also reported strong overall revenue in spinal implants, biologics, and enabling technology, totaling $110.9 million, which surpassed expectations. Additionally, the global orthopedics segment saw a consistent 6% growth in constant currency, contributing to a positive long-term outlook driven by anticipated market share capture and cross-selling synergies between the spine and orthopedic businesses.

Orthofix Medical Inc. reported a GAAP SG&A expense at 72.0% of revenue, significantly higher than the expected 66.7%, indicating inefficiencies that may dampen future profitability despite a backdrop of industry growth. Although the company achieved an adjusted EBITDA of $25.1 million, surpassing expectations, the lower-than-anticipated SG&A expense and potential overestimation of cash flows raise concerns regarding operational effectiveness and cost management. Additionally, the revenue forecast of approximately $820 million includes contributions from M6 revenue, but excluding this factor, it would lag within management's pro forma guidance, posing further uncertainty about long-term financial performance.